Sticking to the rules
Q. It is tempting to leave getting up to speed with compliance until we receive a visit from the regulator, if at all. How much trouble could we be in with the Financial Services Authority?
Many firms spent a lot of time last year preparing for regulation and, having received their minded-to-authorise letter, the temptation may be to take their foot off the pedal where compliance is concerned.
I have no idea which, if any, rules you may be breaching and, therefore, how serious the position is. A firm that has embraced compliance but has not quite got it right is likely to be given every opportunity by the FSA to correct matters, particularly if the public are not at risk.
However, what you seem to be outlining here is a firm that is acting recklessly and the penalties on discovery could be severe, both on the firm and on the senior management, who have given a commitment to the FSA to ensure compliance.
You need to undertake a review of all the areas of compliance. Get external help if you are not sure of what you are doing and draw up an implementation plan of remedial action. Depending on the seriousness, it may also be appropriate to advise the FSA of the position and of your action plan.
- Have your query answered by the experts tel - 020 7484 9808, fax - 020 7484 9989 email - richard.adams@incisivemedia.com.
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