Annual Compliance Report
Systems and Controls Sourcebook (SYSC) requires you to provide a written report to your Governing Body in respect of compliance on an at least annual basis. The report should cover areas including your compliance monitoring, policies and procedures and the risk management processes you have in place. You might also wish to provide details of any “horizon” or issues whereby compliance monitoring is to be undertaken in the course of the next year. We normally recommend a two-month timeframe for this report.
Money Laundering Reporting Officer (‘MLRO’) Report
Your MLRO is required to submit a report to your Governing Body on an at least annual basis in respect of the operation and effectiveness of your firm’s anti-money laundering systems and controls. We normally recommend a two-month timeframe for this report.
Don’t forget this includes results of “Reviewing Policies and Procedures”
Compliance monitoring obligation
The Financial Conduct Authority (FCA) require firms to regularly assess the adequacy and effectiveness of the measures they have put in place to comply with all applicable FCA rules, through active compliance monitoring. If you have been affected by recent rule changes, this is a suitable time to satisfy yourself that you are complying with the new rules. Firms are encouraged to take a risk-based approach, so there are a number of ways in which LS Consultancy can really help:
- Review and update your existing monitoring programme to ensure it is risk focused and fit for purpose.
- Perform an independent compliance effectiveness review of any internal monitoring that you have conducted. We recommend that this is completed at least every two years.
- Conduct a monitoring review into one or more specific areas of your compliance arrangements and provide a report on any deficiencies.
- Provide a fully outsourced compliance monitoring review.
As the FCA imposes more (and larger) fines on individual board members and senior managers, we feel that compliance monitoring is probably the best investment a firm can make to protect itself and its board.
If you need to create, review or execute your Governance. Risk or Compliance strategy, call us today on 020 8087 2377 or email info@LSCPROM.co.uk.
This guide is only an aide memoire and intended for information only for anyone appraising the documentation needed in an audit/compliance check. It is not to be considered as direct advice or intended to replace specific 1 to 1 engagement with your compliance and risk professional.
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