Please scroll down to see the range of review work we undertake, or use the links on the left to jump straight to a particular topic.
We regularly undertake compliance and regulatory reviews for FSA authorised firms. These can either form part of our ongoing compliance support service or be arranged as a free-standing exercise. The scope can be as broad or narrow as the client wishes. We can undertake a wide-ranging review of a firm's overall state of compliance, or focus in more narrowly on, for example:
- specific products or service areas;
- specific branches or locations;
- systems and controls (in general, or in a specific area);
- the structure and effectiveness of compliance departments;
- documentation.
Whilst most reviews are undertaken at the initiative of the firm concerned, we are happy to carry out reviews for third parties such as the FSA, insurers, owners or others.
Examples of recent review work include:
- a review of the discretionary trading activity of a private client stockbroker as part of an investigation into suspected account churning;
- a comprehensive compliance review against the FSA's requirements for general insurance firms, for an intermediary which had internally identified some potential problem areas;
- a review of the acquisition finance activities of an international bank in order to assist the group compliance function develop appropriate monitoring procedures and regulatory training programmes;
- a review of systems and controls and ICOB compliance of the insurance activities within a group whose principal business is not insurance. Our report ranged widely, addressing wider issues of corporate culture, organisation and controls as well as the detail of the ICOB requirements for individual sales;
- a review of a sample of a firm's PPI telephone sales for compliance with FSA requirements.
Under section 166 of the FSMA the FSA can require a firm to provide it with a report by a "skilled person". Given the experience of our management team as regulators, compliance officers and consultants we are well placed to undertake skilled persons work, and we would be happy to discuss the requirements with you were you required to have a "skilled persons" report produced for the FSA.
We can help firms that find themselves involved in FSA investigations in a number of ways, including:
- advising on an appropriate course of action once a potential disciplinary matter has come to light;
- carrying out an independent review in order to determine the extent of any potential regulatory issues;
- working with the firm in its dealings with the FSA;
- advising on remedial action to be taken.
Examples of work that we have undertaken in this area include a high level review of systems and controls in a hedge fund manager following a fraud and subsequent FSA investigation. More recently we have worked closely with a client's legal advisors in relation to potential enforcement action relating to an unregulated collective investment scheme. We are currently assisting a client with an ongoing Section 166 issue relating to anti-money laundering procedures and controls.
We would generally recommend that a client that becomes involved in formal enforcement proceedings appoints legal advisors with specific experience in relation to FSA enforcement issues. In such cases we will usually work with the law firm concerned in a support role in relation to the enforcement proceedings as such, while working with the client on remedial action, systems improvements etc as required by the circumstances of the particular case.
We can help with planning, execution, monitoring and post-implementation review of a wide variety of projects, whether for individual firms or wider groupings of interested parties. What we can offer here is best illustrated by some specific examples:
- We have assisted a private client stockbroker develop and implement wide ranging operational procedures designed to embed compliance requirements within day to day operational procedures.
- We worked with a large secondary insurance intermediary to put in place a completely new approach to insurance compliance, to replace arrangements that did not meet business needs. This involved advising on the options for a more appropriate system, processing a new authorisation application to the FSA, devising procedures tailored to the particular needs of the client's business, drafting written guidance in a form and style appropriate to the staff involved in insurance activities, running training sessions, and providing ad hoc support to bed the new system in.
- We have assisted a number of clients with the planning and implementation of their own CRD / MiFID projects. See our Briefings pages relating to CRD and MiFID.
- We have recently undertaken a project on behalf of a third party in relation to suspected breaches of conduct of business requirements by a private client stockbroker.
- We are working with several clients on TCF-related projects, including gap analyses and implementation projects.
- In the run-up to the introduction of general insurance regulation, we worked closely with RICS and a number of their member firms to develop a solution to a problem with the application of the client money rules to property managers which at one point seemed likely to cause the sector major difficulties. Our thorough analysis of the issues and the underlying legislation facilitated a constructive dialogue with the FSA to secure a small change to the proposed rules which resolved the issue without creating any new difficulties.
- In 2006 we undertook a qualitative study for the Investment Property Forum to gauge the demand for an appropriate FSA investment property exam that it is intended will be listed by the Financial Services Skills Council. Bovill undertook research into the numbers of individuals potentially impacted by FSA in the investment property sector both now and in the future through structured interviews and a questionnaire which was sent to all IPF, RICS and AREF members.
- We have provided training modules on approved persons, money laundering and TCF for e-learning providers.