Compliance Support Services
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“In an ever changing regulatory environment, having access to the Compliance Helpdesk allows threesixty client Firms to quickly resolve problems, balancing commercial needs with regulatory requirements.” threesixty Director, Russell Facer. |
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Awareness and preparation for the change is very important in today's Regulatory environment. As we move more towards a principle based Regulatory regime, industry guidance will play an increasingly important role. Russell Facer, Partner at threesixty, explains how threesixty’s Compliance Helpdesk assists client Firms with those changes.
What have been the main issues Firms have faced recently which has prompted them to use the Compliance Helpdesk?
Although more than twelve months has expired since the first Retail Mediation Activity Return (RMAR) this remains a subject of concern for many Firms. Although Firms may find that the pain begins to subside when they complete their second or third return, it is much easier when you have someone on hand to help. We have assisted with literally hundreds of Returns, so have built up extensive experience on pretty much every issue that can arise. This helps us to resolve issues speedily whether it is identifying the reasons for fault notifications or providing guidance on what a particular term means. To assist Firms with their return we produced extensive guidance, in plain English, avoiding lots of cross references to FSA Handbook rules. We have taken many Firms right through their return from start to successful submission.
Assistance in this area is especially useful for Firms that are venturing into the Directly Regulated world for the first time. On the helpdesk we have assisted over 50 Firms through their FSA application in the last twelve months. This is a very valuable service helping Firms get the control and freedom over their futures.
We have seen this year the introduction of new Money Laundering regulations - a new risk based approach to tackling Financial Crime. FSA’s principle based approach to regulation requires Firms to make their own judgments on suitable standards. Firms now need to take into account the risks of failing the principle and balancing these with the Firms own commercial needs. The approach adopted must then be documented. With greater flexibility comes greater accountability, so to assist Firms with the changes threesixty prepared guidance on the new rules. This guide contained supporting documentation for the new processes including a risk policy statement, verification forms, a presentation with notes for MLRO’s to use for staff training, with assessment papers to follow-up the training.
We assess any new changes, identify the impact on our client base and then to prepare various methods of translating these into workable solutions. Naturally one size does not fit all and the Compliance Helpdesk, Technical Helpdesk and Compliance Field Support Team helps Firms where necessary to tailor the solutions to their individual requirements.
Unfortunately, one of the ever present issues this year has been the steady stream of endowment complaints, heavily fueled by claims management Firms. We have helped with hundreds of cases in this area alone. The assistance has varied including general discussions on merits of a case, preparation of senior management decision letters, loss calculations and challenges to Financial Ombudsman Service decisions. Based on current trends it is suggested that endowment claims will be reduced next year. However good your advice may be, complaints are an occupational hazard so threesixty will provide support when required.
Financial Promotions regulations are another minefield. It is very important that your promotions are compliant for two reasons. Firstly, this is an area which is very visible to the Regulator. Secondly, your clients will base important decisions on the information provided. Should a complaint arise in future, the information provided will come under scrutiny. For this reason threesixty's Compliance Helpdesk offer a very popular financial promotion review service. We will guide you through the regulatory requirements and highlight any risks involved with the promotion. Ultimately, as a directly regulated Firm you make the final decision as to what to include but you will be able to make an informed decision.
Are there more changes ahead?
Definately! Change will continue apace. FSA’s further implementation of a principle based approach to regulation will lead to less specific rules. This will leave senior managers in each Firm to make more decisions as to what they need to do to comply. It will take increasingly more management time to digest the requirements and to generate solutions. This is where the Compliance Helpdesk’s research team comes into action, to devise solutions to each new challenges.
The team is currently reviewing various topics including MiFID (Markets in Financial Instruments Directive – implementation 01/11/07), NewCOB (the amended FSA Conduct of Business Handbook including change to the Financial Promotion requirements – implementation 01/11/07), Home Reversion Schemes, Home Purchase Plans and SIPP regulation (all of which are due to become regulated from the 06/04/07), and updates to the Menu Market Averages (implementation 01/01/07).
What are the day to day activities of the Compliance Helpdesk?
In addition to the research and guidance provided, the Compliance Helpdesk is very much the front line for many client queries across a broad spectrum of issues from Individual Verification requirements in unusual situations, to referencing requirements during the recruitment process. An answer to the query is generally immediately available; however where this is not possible we will undertake further rsearch to find a solution. These day to day queries help us to identify issues or trends which may not even be Compliance related. Having identified an issue we are able to supply additional guidance in Round Up our weekly newsletter and via the client only website. Where necessary, this is follwed up by an new service or more detailed guidance, the introduction of the TCF seminars are a great example of this.
Our objective is to react positively to change and anticipate our clients' needs as far ahead as possible.