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 in addition to undertaking any corrective work can at times place a burden on a 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. The FSA have taken a graduated approach up to now. It states that the next step is to follow up organisations actions to ensure that messages have been acted upon. Where issues are not 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 resource away from the day to day operation of your organisation. Furthermore 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 either change or put in place systems to protect against 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 carry out 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.

Having gained an in-depth understanding of your business and placed the need for ’corrective action‘ in the context of your business model and the products and services you offer, we can present advice to your senior management team.