Compliance Monitoring

Compliance support has two key roles. This is both advising on and monitoring of compliance issues.

Firms should have a comprehensive risk-based monitoring plan. The plan should identify the regulatory risks which exist, measure these in relation to impact and likelihood, identify priorities and document risk mitigation actions. Mitigation actions often take the form of carrying out regular monitoring of the risks identified. The plan should evidence how your firm manages its risks in relation to treating its customers fairly.

The compliance monitoring plan should identify what areas will be tested, how they will be tested, how frequently this will take place and who needs to be involved. The plan should be reviewed regularly, at least annually and be signed off by senior management. It should also be proactive and interactive i.e. be flexible enough to adapt to new risks identified, regulatory developments and/or changes to existing risk profiles. Records should be maintained of monitoring carried out and including any actions agreed to improve the effectiveness of systems and controls – and who should take these.

How we can help

Gem Compliance Consulting has extensive experience of providing compliance monitoring for firms. This includes:

  • documenting new risk based compliance monitoring plans, to ensure that these reflect regulatory requirements but are also appropriate to your firm’s own circumstances
  • reviewing existing plans to assess completeness and effectiveness and also of the monitoring process itself
  • carrying out routine monitoring under the firm’s existing plan as an ‘outsourced’ resource
  • reviewing the outcome of the monitoring process including reporting to senior management and completing remedial actions
Compliance monitoring services can be provided either on a time cost basis or we can agree a monthly retainer to cover regular monitoring (i.e quarterly, half yearly or annually) as required.
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