Regulatory specialist on the compliance team Mark Dennison says firms still using “out of the box” compliance solutions need to urgently review their procedures as these do not guarantee firms will pass an FSA inspection.
He adds that, in some instances, using a template system for compliance will also mean that a firm will do either too much or too little with the aim of achieving compliance.
“Each firm needs to adopt a risk-based approach to compliance, allocating resources to manage risk effectively and efficiently. Each situation is unique to the requirements of the regulated firm.
“The FSA never wanted a situation whereby they produce a long shopping list and every IFA in the land rushes around to fill it. For regulation to be meaningful and productive it has to be about a procedural change that is specific to each business and not simply a tick-box exercise.”