Services

Auditing and Compliance Health Checks

Many firms feel they already have reasonably strong risk management structures in place and a thorough overview of compliance and risk management controls is at least an annual requirement. Starting from £750 (sole trader), an audit is carried out by an unconnected third party and provides an objective review of their systems and controls.

The FSA has started rolling out B.R.A.W., a Business Risk Awareness program of assessments and follow-up visits, which will hit the South West in on 4th March 2012. The regional seminars will feature half-day workshops, then interviews and visits starting June 2012. Small firms are expected to attend as part of the FSA’s approach and demand for higher standards. The FSA will establish how firms manage their risks and their focus will be on four key areas: the firm’s business model, the firm’s management, the firm’s controls and the firm’s prudential arrangements. During April/May 2012 the FSA will commence regulatory reviews with firms, picking up on any issues they identified during the assessments by holding one-to-one surgery sessions or telephone interviews.

A health check might cover:

• To test how robust the firm’s internal systems and controls are;
• To provide ‘principle firms’ with documented auditing of their appointed representative firms;
• To highlight best practice as well as deficiencies in a firm's internal procedures.

These can be ‘FSA style’ audits across the whole business, conducted on a regular or one-off basis, or a compliance health check which is focused on a particular area, such as keeping ahead of new regulation, making sure the firm complies with the financial promotions rules, has an effective complaints handling or training and competence records and client files that contain everything they should.

By carrying out these assessments valuable management time is concentrated on those areas where it is most needed, leading to increases in both effectiveness and efficiency.

Whichever style you select, initially we provide verbal feedback but follow this up with a full written report. The feedback is comprehensive and constructive rather than simply criticising and aimed at facilitating remedial action where necessary.

Please contact us for further information.

Following a very successful TCF telephone interview last Thursday I though it appropriate, bearing in mind TCF, to say how very much I have appreciated Steve's invaluable assistance in not only reviewing our procedures but also helping me to prepare for the 'ordeal'!

David Jones
Managing Director
David Jones Financial Planning Ltd