E: Additional Oversight

Nota:

• - FCA expects them to ensure they have appropriate procedures to prevent, identify, and address any risks to the firm and its customers

Nota:

• - all firms must meet FCA principles - must have framework for assessing & covering risks to their business, meeting regulatory requirements, & checking firm continues to be compliant  

Nota:

• - ensure firm appointed understands regulations relating to Capital Adequacy, financial reporting, record keeping, and client assets - FCA takes enforcement action against firms which are unable to comply with Captial Adequacy req's - FCA req's are over and above normal accounting standards & other legal req's such as the Companies Act

Nota:

• - under Companies Act legislation incorporated entities are req'd to appoint a statutory auditor to perform annual external audit on firm's accounts - for financial years ending after 31/12/06 no external audit req'd if firm's accounts meet Companies Act criteria for small companies audit exemption; and they do not undertake any activity within the scope of MiFID, UCITS Directive, Banking Consolidation Directive, or the Insurance Mediation Directive and are not an e-money issuer - firms must appoint an auditor to report separately to FCA on firm's client assets if they are already req'd to appoint a statutory auditor for Companies Act purposes or if they have formal permission to hold client's assets - unincorporated entities without permission to hold client assets have no need to have annual accounts audited

Nota:

• - must use utmost diligence to avoid loss - law will hold them liable for any loss caused by a breach of duty