In the letters, the FCA emphasised the need for firms to continue to pay due attention to:
The letters concluded with the FCA drawing attention to the requirements under SUP15.3 and Principle 11. Firms must make due notification of any material issues or concerns.
The regulators are focusing heavily on building a resilient framework for the financial services sector. There are two elements to this, both of which are equally important. Firstly, firms must focus on building operational resilience. Secondly, firms need to consider their financial resilience. Both require firms to take into consideration the impact of any third parties and sub-contractors upon their own business and clients.
Further Dear CEO letters were issued to the insurance sector earlier this year, which reiterated the messages of the earlier letters. It also served as a reminder to have adequate processes in place to ensure funds are protected.
Firms need to review their current arrangements, share the letter with Boards and ensure the Board understands their CASS risks and how they are managed.
How Ruleguard can help you:
Ruleguard is an industry-leading software platform designed to help regulated firms manage the burden of evidencing and monitoring compliance. It has a range of tools to help firms fulfil their obligations across the UK, Europe and APAC regions.
We offer practical line-by-line mapping for client asset compliance in custody, client money, mandates and resolution packs.
Get in touch with the Ruleguard team to learn more on: 020 3965 2166 or hello@ruleguard.com
Ruleguard hosts monthly webinars, to register your interest please click here.
See our blog page for further articles or join our mailing list to keep updated.
Visit our website to find out more about how Ruleguard can help:
Contact the author
Head of Client Regulation| Ruleguard