Feel the Compliance Fear; and how to beat it!


INSIGHT
Published
Mar 4th '22
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Compliance Pain Points Q&A.

 

  • Fear of falling foul of the Financial Conduct Authority (FCA) for breaking a rule that you did not know about

Unknown unknowns are a constant worry, driving you to distraction at times when it comes to regulatory compliance standards. As the phrase implies, you do not know what you do not know and the FCA will take the view that you should have known. Ignorance is not a valid excuse. LS Consultancy can ease your worry because using our experience, built up over many years, conducting many types of compliance audits, we can audit your firm’s compliance regime to ensure that everything that should be covered is covered – and what isn’t can then be addressed.

 

  • Compliance consultants are expensive

Have you seen some of the fines handed out? The SMCR has created obligations for SMFs, and still many are not doing them correctly. Specialist compliance staff are an expensive cost to the business. LS Consultancy will save you money by providing expert support at a fixed cost when you need it, or be available when you do need it in the future. Remedial compliance work is a very lucrative money spinner for compliance consultancy companies.

 

  • Your team has none or limited, compliance experience

Many start-ups in the financial services sector are created by entrepreneurs from outside the sector with no experience of compliance or by sector professionals who only have limited experience of compliance. LS Consultancy will resolve this issue by ensuring that you have experts working to guide and educate you from day one. We can provide training courses as PDFs, online, or face-to-face. Just ask for details

 

  • Compliance rules seem to change often, and it is hard for you to keep up with them

Compliance is a dynamic environment, as well as risk and governance and they all impact regulatory compliance standards. At LS Consultancy we are fully abreast of any developments well in advance of their implementation and can advise you on a retainer basis if needed. Why not sign up to our newsletter.

 

  • When communicating the FCA uses language which is sometimes difficult to understand

The FCA in their letters, handbook, website, and other communications uses quite technical language which is difficult for most people to understand. The FCA does explain this in the Perimeter Guidance part of the handbook under the section PERG 1.2.3GLS Consultancy use the FCA Handbook as their backyard everyday and are familiar with the way the FCA speak and will interpret for you.

 

  • Spending time on compliance takes you away from producing revenue

In a small firm the compliance functions will likely be overseen by a senior staff member who is also a revenue producer and sees that as his primary role. While compliance is not a revenue producing department it can actually protect the firm from many financial risks. LS Consultancy can free up the valuable time of revenue producers and take care of many of your compliance needs for a cost-efficient fixed fee.

 

  • Familiarity breeds contempt

Often a firm does things certain way, and this does not ever change because “It’s always been done this way.” As Hewlett Packard explained, regarding why they used external consultants all the time; “they didn’t want to choke on their own exhaust.” Client’s often declare they know compliance and, like the definition of insanity, keep doing what they have always done, and the results don’t change. This is not ideal as errors can become entrenched and not easily seen, leading to intense regulatory scrutiny, and possibly censure. LS Consultancy can audit your policies and processes with fresh eyes and update them where they are no longer fit for purpose. We can also provide a managed service to remind you to review, revise and re-publish you policies as required, as well as alert you when any changes are needed. Alternatively, we can do this for you and then promulgate and manage the attestations within your firm.

 

  • Your compliance staff do not feel truly independent

While the regulator expects compliance staff to act as independent (see SYSC 6.1) and able to challenge senior management, to manage the regulatory compliance standards, this may not always be the case for a variety of reasons. LS Consultancy will provide senior management with a truly independent view of your firm’s compliance policies and procedures, and can regularly assess and review, providing your SMFs with comfort that their reasonable steps are being fulfilled adequately. Our audit & compliance report details the areas of weakness, the impacts, risks and recommendations as well as evidence provided, and a management response areas for your compliance records, to help demonstrate your SMCR obligations have been met.

 

  • Your staff need training in compliance

LS Consultancy has experts who can train your staff for you, either online or in person. We can provide training courses as PDFs, online, or face-to-face. Just ask for details.

 

  • You want to ensure that your regulatory compliance standards are high enough

LS Consultancy are a team of experts in the field and will ensure that your compliance functions are the best it is possible to be through our benchmarking audit. Far more than just a compliance audit checklist, we identify areas that are threatening the integrity and robustness of your business. When conducted on a regular basis and the report forming part of the annual report to the Managing body, this provides your clients with confidence and reassurance as well as the regulator.

 

  • I don’t know if we could cope if key compliance staff are absent

Staff can be absent for many reasons, short term, or long term, but the need for a business to consistently ensure a permanent compliance function and high standards remains constant. LS Consultancy can help you cover any crises caused by staff absence. Whether this is short term until new people are trained, or longer term if you are looking to make a key hire, we can merge with your existing team and keep things afloat.

 

If you need any assistance, in strictest confidence, call us today on

020 8087 2377 

or email info@lscprom.co.uk.

 

About us

LS Consultancy are experts in Compliance, and work with a range of firms to assist with improving their advertising, documents, processes and systems to help mitigate risk.

 

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