View more on these topics

FSA uncovers serious failings in auditor reports

The FSA has referred several auditors to their relevant auditing bodies after uncovering serious failings in their client asset reports.

The regulator published a consultation paper on improving client assets in September, following a review in 2009.

It found auditors were providing unchanged or ‘clean’ reports despite significant breaches of client asset rules.

The FSA has now put out its final rules for auditors which include the requirement for a template to be used for the auditor’s report, the individual carrying out the audit to sign the report, and a separate template identifying specific rule breaches.

FSA client assets unit leader Richard Sutcliffe says: “We have seen serious failings in relation to auditors’ client assets reports. As a result we have referred a number of auditors to their relevant auditing bodies over the past year and are currently considering referring several other cases.

“Ultimately it is a firm’s responsibility to ensure they have adequate systems in place, but we rely on their auditors to provide some of the necessary independent assurance. These new rules make it crystal clear for firms what we require of their external auditors when it comes to producing high quality and consistent client assets reports.”

The rules will come into force on June 1, but firms and their auditors will have the option of not applying the new rules until September 29 to transition to the new rules.


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. How many years after Enron? and they are only just coming up with a template for auditors! I’m clearly not using the same dictionary for words like “proactive”. I trust they have all the necessary qualifications….?

  2. Shame they don’t do the same to themselves and report their own failings !!

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm