Bankhall is urging firms to review their systems and controls in light of the FSA’s increasing scrutiny of this area as part of its credible deterrence approach.
Bankhall’s managing director Nick Kelly says the FSA is currently conducting a supervision review involving a small number of directly authorised firms to identify if their systems and controls meet with regulatory requirements, but he expects this initiative to expand and follow the same route as the FSA’s TCF roadshows that stretched over several years.
He added: “Due to its more intrusive supervisory approach we are seeing the FSA placing a greater emphasis on the capability of individuals holding controlling functions within adviser firms and making them more accountable for their actions.
