UKFS Compliance Monitoring Plan

"This must be tailored to your business, and take into account the type of regulated activity your firm intends to carry out." - FCA

As part of the authorisation process the Financial Conduct Authority (FCA) will require all firms to detail and attach a Compliance Monitoring Plan (CMP) as part of their application pack. This highlights the key areas for consideration for firms to contemplate when developing their CMP.

What do you need to put in it? 

Firms should have a comprehensive risk-based programme that is linked to the Regulatory Business Plan so that they can prioritise and escalate any monitoring of any high risk areas more frequently. The CMP should identify the areas of regulatory risks which exist, measure these in relation to impact and likelihood, identify priorities and document risk mitigation actions. Mitigation actions often take the form of carrying out regular monitoring of the risks identified or conducting an assessment of the top risks and controls. The plan should evidence how your firm manages its risks in relation to treating its customers fairly. 

The compliance monitoring plan should identify what areas will be tested, how they will be tested, how frequently this will take place and who needs to be involved. The plan should be reviewed regularly, at least annually and be signed off by senior management. It should also be proactive and interactive i.e. be flexible enough to adapt to new risks identified, regulatory developments and/or changes to existing risk profiles. Records should be maintained of monitoring carried out and including any actions agreed to improve the effectiveness of systems and controls – and who should take these. 

Prepared by Compliance Consultant, one of the UK's Leading Compliance Consultants, London based, but servicing the UK, EU & The Middle East.

If you are a start-up and want a fixed price FCA Authorisation project plan, why not add the FCA Authorisation Pack Application Fee - Where we do it all for you?

If you need a Regulatory Business Plan then we can provide this for you as well and complete your application all for a fixed cost*.

*Subject to terms and conditions, excludes complex applications