Independent Assurance Reviews – testing your control framework to protect your Firm
Reviews carried out by an independent third party can be a value-adding activity for all regulated companies. These reviews are not necessarily triggered by a firm’s knowledge that something is wrong. On the contrary, these reviews are viewed as a positive process and can provide assurance to both internal parties, such as senior management and the Board, as well as external parties, such as the regulator and also shareholders, that the Firm is operating within its regulatory remit and its controls are operating effectively.
Your Firm may be exposed to weaknesses in your control framework, yet not know about it until it is too late.
Risk and compliance are both disciplines that are designed to prevent certain events from crystallising. If those events do not crystallise, then it may appear that your control framework is effective. However, it could simply be that the controls you have in place have not been challenged sufficiently, meaning that a firm may be exposed to weaknesses in its control framework, yet not know about it until it is too late.
What can we do to help?
We can review your compliance arrangements, including policies, procedures, resourcing, and reporting, to assess how well they meet your business requirements alongside the ever-evolving regulatory expectations and interpretations. We can conduct full compliance reviews or specific examinations of just one area. Reasons you may want to consider an independent review by an objective external expert of certain areas of risk exposure include:
- Client onboarding - obtain assurance that your Clients have been onboarded in line with relevant AML and conduct requirements, and where any gaps are identified, recommendations to improve or remediate where necessary.
- AML framework - attain an independent view on the adequacy and effectiveness of your AML, CTF and Sanctions framework.
- Conduct risk - review your business model and the inherent conduct risks to ensure that you are in control of this relatively new risk class.
- Compliance framework - attain an independent view on the adequacy and effectiveness of your compliance framework, including compliance strategy, allocation of resources, reporting lines, independence between first and second line, management information, and preparedness for regulatory change.
- Regulatory visits - prepare your business for regulatory visits, thematic reviews and other regulatory interactions.
- Compliance monitoring - outsource your 2nd line compliance assurance activity to us to receive expert, value-added assurance on your compliance framework and performance against internal procedures and regulatory inspections.
- Data protection - review your data protection framework and obtain advice in light of ever-increasing focus on data security.
- Benchmarking – review your current compliance arrangements by drawing on our extensive knowledge of current best practice and our unparalleled view of peer group practices.
What should you do now?
If you haven’t had an independent review of your risk and compliance framework previously or for a while, or if you would like to commission a specific, focused review on your compliance arrangements, we have a dedicated team of experienced consultants that can provide expert assurance to give peace of mind to your Firm.