The FSA’s supervision and risk mitigation programmes create a number of situations where organisations have to respond to actions requested by the FSA. The work required to manage the response to the FSA as well as undertake any corrective work can at times place a burden on an organisations resource as well as divert senior management time.

Current issues requiring corrective action include:

• Enforcement resource deployed towards cases and issues that are priorities for the FSA. Fines and penalties will be at levels that deter potential wrongdoers. Thus penalties may increase

• Mortgage and general insurance. FSA have taken a graduated approach up to now. It states that the next step is to follow up on organisations actions to ensure that messages have been acted upon. Where issues have not been tackled the FSA will intervene including taking enforcement action

Remedial work
Managing work that has been undertaken to correct failings or errors can present senior management with a major challenge. A major remedial work programme can divert your own resource away from the day to day operation of your business. Moreover the impact of a poorly thought through and managed programme or remedial work can adversely impact your business model, the relationship with your customers and potentially your regulator relations.

The need to conduct remedial work can arise from a number of situations including:

• Where your organisation has identified breaches of conduct that requires positive action to change and put in place systems to protect against any repeat failures,
• As part of your FSa risk mitigation programme a series of risk mitigation actions may be required together with reporting to the FSA,
• Following on from FSA thematic reviews, your organisation may be required to undertake work to report on the FSA’s findings or undertake a series of improvements,
• Where the FSA has serious concerns, you may be required to instruct a skilled person to undertake review work and report to the FSA under S166 FSMA

How we can help

Our team of compliance consultants can provide you with a broad range of technical compliance expertise relating to your regulatory and anti-money laundering obligations.