Posted on 26 January 2010
Following recent regulatory visits to a number of firms, Sally Dewar, FSA Managing Director of Risk, has written a “Dear CEO” letter to explain how the FSA expects firms to address its concerns regarding firms’ handling of client money and assets.
During the visits the FSA reviewed: (i) senior management oversight; (ii) due diligence; (iii) governance arrangements; (iv) record-keeping; (v) acknowledgement of trust arrangements; and (vi) diversification.
The FSA has now published a “Client Money & Asset” report which sets out the FSA's findings from these firms’ visits and indicates the priority areas for the FSA over the coming year.
Ms Dewar has stressed that greater priority is being given to achieving compliance with client asset requirements - the FSA has already taken regulatory action where firms have not complied with its requirements. This intensive supervision will persist and the FSA will continue to take action where it is of the opinion that client assets are not sufficiently protected.
Related Link: FSA "Dear CEO" letter
Related Link: FSA Client Money & Asset Report
