The regulatory landscape is continually changing and firms need to be aware of the latest regulatory thinking and interpretation of FCA hot topics and associated rules and guidance. The FCA prioritises certain sectors and themes in its annual Business Plan based on a risk analysis of the market and what it believes to be key issues arising in the financial services industry. The FCA use thematic reviews to assess a current or emerging risk regarding an issue or product across a number of firms in a sector or market. It is also commonly referred to as ‘issues and products’ work or ‘cross-firm’ work. Keeping ahead on these high profile sector and cross sector initiatives is crucial for firms and their Boards.
Do I need to do anything?
If the FCA is investigating one or more business areas, firms would be well advised to determine if they have any potential liabilities in these areas. In some cases, the FCA will instruct potentially impacted firms (through a general rather than a firm specific instruction) to determine if they have any such liabilities.
Where the FCA conducts a thematic review, it expects all firms in the same sector that have not been included in the review to undertake their own assessment of potential issues and to remedy any weaknesses identified.
How can we help?
We have regular dialogue on the most important industry issues to ensure we are up to date on the most pressing issues affecting the industry and our clients. Thematic work is done by people with specialised expertise. Where the FCA conducts a thematic review, it expects all firms in the same sector that have not been included in the review to undertake their own assessment of potential issues and to remedy any weaknesses identified.
We can provide tailored support on thematic reviews, leading the project on your behalf where we undertake the review on your behalf, focusing on the issues identified by the FCA, and report to you on any weaknesses and suggested process improvements, or alternatively provide independent assurance that your own review has been conducted thoroughly.