Risk and compliance - 5 tips when planning for regulator reviews

Thank you Christian.   Well, I think firms should always be one step ahead and keep an eye on what the FCA is actually releasing and by that I mean in particular the annual business plan in which the FCA usually outlines its key priorities and areas which it plans on focusing on in the upcoming year but also any thematic plans and reviews it plans on undertaking.  So it's quite important for firms to know what the FCA's expectations are for the upcoming year and it also gives a good outlook into what the FCA is actually going to review.

Secondly, you always have to be prepared in advance, so if you have a requirements notice from the regulator you have to be aware of what the regulator is actually expecting of you in that review and by that I mean you have to make sure that your management and the relevant staff are aware and are prepared for what is likely to occur and this usually takes the form of a mock interview. You have to make sure that your processes and outputs are in place, that your documents are ready for audit but more importantly you have to make sure that the requested documents have not been altered or changed.

The risk management strategy within any organisation should be designed in a way to prevent and avoid the regulators in question or investigation but in the case this has already occurred, the internal strategy should make sure it covers any areas that the regulators may challenge them on.

So the fourth point is to get the right people involved in the organisation and by that I mean firms should ensure that they have established an internal programme management in order to ensure that the review goes and the structure is efficient, there is coordination and that there is accountability for any decision that is made.