New Business Monitoring
& File Reviews
As a regulated firm, we can help ensure that you maintain stringent reviews and controls for monitoring new clients. For file checks and reviews to be effective, they should be regular and thorough. We recommend a combination of annual, quarterly and ad-hoc reviews. Periodic reviews will enable a rigorous audit of your files, and ad-hoc reviews will then help ensure your employees are consistently maintaining compliance.
File checks and reviews are not just about the FCA’s compliance requirements, though this is an important factor in firms setting up their procedures.
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The FCA has written to firms in the past when it has wanted to conduct a mass checking of files.
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For example, the FCA has previously identified the suitability of the advice provided as an area of potential risk, and therefore focused it’s file reviews on assessing suitability, including looking at suitability reports.
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File checks should act as a check for administrative errors, but also to enable firms to assess the advice process, and the quality of advice their advisers give to customers.
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Reviewing files can help firms:
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Detect and deter any inappropriate behaviour.
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Identify areas for individual development and reduce the risks that come with non-compliant behaviour.
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Help to embed compliance culture in a firm.
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Support learning and development, in both the person being reviewed and the reviewer.
This procedure should check whether a firm’s internal processes and procedures are FCA-compliant and identify any areas where advisers are falling short in their compliance.
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Consequently, the reviewer should have the necessary qualifications and experience to identify and assess any compliance-related issues.
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To learn more about how we can support you with new business monitoring and client file reviews, click the button below to book a free no obligation consultation.