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FSA warns building societies over compliance issues

The FSA has issued a warning to building societies to improve their compliance structures.

Speaking today at the Building Societies Association annual conference in Birmingham, FSA director of conduct policy Sheila Nicoll said the regulator is concerned the compliance checks carried out by some building societies are not up to scratch.

She said: “Overall, our current supervision of building societies reveals it is far from clear how robust and effective some of your compliance arrangements are.

“If you have not already done so, you need to review your compliance arrangements to make sure they are robust, comprehensive and up to date.”

Nicoll added that board members must ensure they have a tight grip on activities.

She said: “Boards need to be sure that what happens on the ground is what they want and expect to be happening. And let us not forget that if you get this wrong, there are significant consequences, not just in terms of the hit on profits and capital caused by redress and FSA fines, but probably even more the harm it does to your society’s reputation and indeed the reputation of the sector as a whole.”

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. Increasingly Frustrated Adviser 4th May 2011 at 3:02 pm

    Be aware Building Societies. the robust, effective, comprehensive and up to date FSA is after you!!!

  2. Pot and Kettle comes to mind!

  3. Incompetent Regulators Awards Team 4th May 2011 at 3:16 pm

    You mean Sheila Nicol said all these things. Do you mean the one that couldn’t answer simple questions at the TSC meeting with Sants such as how many advisers over the age of 55 would be affetced by RDR? And a host of other baby questions?

    I award my wooden spoon to the champs, the Fine Slapping Authority with no accountability set up by Crash Gordon the man who recently admitted he made mistakes.

    Oh, that’s all right then just keep making them.

  4. Why does every word that comes out of the mouth of the Leviathan have to be a threat or a warning?

    Hope george mudie does not see that smirk on ms nicolls face.

  5. Will Micheals 4th May 2011 at 4:50 pm

    Damned if they do, damned if they don’t.

    At least they are learning from the mistakes made with the banks.

    Some of this Building Societies are as archaic as the average IFA.

  6. Shaun McMahon 4th May 2011 at 4:54 pm

    Incompetent Regulators Awards Team | 4 May 2011 3:16 pm

    Not sure how you expect the FSA to know how many advisers over 55 will go as a result of the RDR

  7. how archaic sorry old are you Will ? hopefully young enough to be forgiven for not realising age discrimination is unlawful.

  8. The FSA -typical woolly comments and lack of substance. The robustness of any scheme can be measured and quantified. It is it the quality of audits/checks or the procedures? More detail please!

  9. Lack of any clarity or positive suggestion as usual. Just another sound bite to ensure the regulation of fear continues with enough lack of direction to ensure the FSA do not get egg on their face should anything serious go wrong.
    I like the fact Sheila smiles so, a certain assassin quality and I would hate to see her grimace or girn.

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