With the FCA becoming more proactive, it is essential that e-money and payments firms also take a more proactive approach to their regulatory compliance, to reduce the risk of FCA scrutiny and potential enforcement action.
Firms can no longer rely on an annual or bi-annual audit and review of their compliance framework, controls and procedures. E-money and payments firms are increasingly being expected to have an adaptable strategy to review, that will respond to increased risks to business processes or functions, and that evolves over time to accommodate lessons learned as well as changing risks.
Firms also need to ensure they keep up-to-date with FCA priorities and reviews and respond appropriately if they consider their controls in those areas may not be as robust as the FCA would expect.
As well as auditing and reviews, there is an increasing push towards testing, including of controls, by the FCA. Firms need to be able to demonstrate how they are checking that their framework is working as it should be, particularly in key areas, and how the lessons learned from these ‘tests’ are being used to adapt their framework, controls and processes.
How we can help
At Neopay, using our experience of the FCA’s more assertive approach, we’ve developed a range of solutions tailored to the changing attitude of the Regulator. These include targeted audits and testing focussed on specific FCA priorities, to help your firm reduce risk from FCA scrutiny in a cost effective and practical way.
Our adapted Virtual Compliance Service offers new modules for firms looking to regain control and mitigate the new regulatory risks, including spreading the cost of audits and testing over the course of a year. It will keep you up-to-date with FCA priorities as well as providing you with expert guidance and support specific to your business and the areas that are potentially leaving you most exposed.
For more information on how we can support your business, contact our team of compliance specialist here.