Regulatory Review
SYSC326 assists clients to conduct voluntary or 'shadow' Section 166 reviews of financial crime arrangements, to reduce the risk of, or to be ready to respond to regulatory enquiry, with appropriate audit trail/traceability on source information/fieldwork.
The Financial Conduct Authority ('FCA') uses a variety of tools to monitor whether an authorised firm is in compliance with regulatory requirements - SUP 1A.4.
The FCA tool-kit includes desk-based reviews, on-site inspections and using skilled persons' - often issuing the firm to be reviewed with detailed pre-visit information requests.
SYSC326 assists with information gathering and analysis, and the preparation and submission of relevant information to a regulator or skilled person, to reduce risk of omission in information provided.
The FCA Systematic Anti-Money Laundering Programme (‘SAMLP’) is used to test compliance with legal and regulatory requirements, to prevent and reduce financial crime.
The FCA also uses a programme of regular AML inspections for firms which present higher financial crime risk. These may be broad-based, thematic or targeted in their scope.
We assist clients to: (i) co-ordinate programme activity; (ii) ensure appropriate internal awareness; and (iii) maintain an open and transparent relationship with the regulator.
The FCA can require a firm to appoint a skilled person to collect information, conduct a review and produce a report for the regulator's use, on any area of potential regulatory interest or concern.
A firm must provide all reasonable assistance to a skilled person appointed under section 166 of the Financial Services and Markets Act (as amended by The Financial Services Act 2012).
SAMLP and skilled person reviews can be a severe drain on senior management time, and impactive on staff in first and second line roles. SYSC326 support aids reduce operational burden and impact.
