FCA Application Assistance.

Transcription

1 FCA Application Assistance

2 Claire Wilkinson 2

3 Regulatory Business Planning 3

4 Summary of Your Business Key Personnel Organisation chart Company ownership Business activities Marketing strategy Compliance arrangements TCF Financial Crime Risks 4

5 Regulatory Business Planning Risks 5

6 What are the business risks A business risk is a circumstance or factor having a negative impact on the operation or profitability of a firm: Cash Flow and Capital Identify what resources the firm is capitalised with and evaluate any change in these circumstances on an annual basis Applicants must review on an annual basis their business plan and perform a monthly review of performance against predicted forecasts. Key Person Risk If there was a loss or temporary non availability of key staff do you have staff with overlapping skills that could cover if required Would your customers be protected in the event of the loss/unavailability of these staff members Please note if you are a sole director, there is an FCA requirement for you to appoint a locum 6

7 Competitive Risks Is the market sector you work within large enough to accommodate business for all firms? Explain why your particular business will be viable going forward Economic Risks Economic Factors that could impact your business Large Scale Redundancies Low Demand Low Interest Rates Explain how you would address these risks You could refer to the capitalisation of your firm if sufficiently strong, or how you would reduce your cost base if your overall market shrank 7

8 Fraud, Anti-Money Laundering (AML) An anti-money Laundering policy should be put in place by the firm detailing what they would do to prevent Fraud and Money Laundering Therefore within this section it can merely be covered by advising: Appropriate financial crime policies will be implemented to ensure robust controls are implemented Templates are available from the Compliancy Services System Compliance Select Legal Risks If you have professional indemnity insurance you should refer to this and provide basic details of cover 8

9 Regulatory Business Planning Personnel and Training 9

10 What is required for the application For the Application In terms of the application you are required only to confirm an organisation chart is in place and attach said chart The Organisation Chart Should show all senior management and all reporting lines to all staff. If staff will be taken on prior to full authorisation, they should be shown on the chart with a job role and just TBC in place of a name 10

11 What should be in place for the firm You should have in place for all staff, existing and new a training programme. The regulatory rules that they may face when dealing with clients What documentation must be provided to clients What disclosures should be made to clients The Compliancy Services Offering includes at least one licence to our interactive e- learning package Compi-tens that will assist with this training requirement 11

12 What should you consider when taking on new staff If applying for an approved person function the FCA will ask you to justify the following 1. Full details of why the candidate is competent and capable to carry out the controlled function(s) applied for. 2. Full details of why the appointment complements the firm s business strategy, activity and the markets in which it operates 3. Full details of how the appointment was agreed including any details of any discussions at governing body level Therefore it could be argued that these factors should also be taken into consideration when employing any new staff that are customer facing or involved in the role of providing consumer credit business on behalf of the firm Remember it is the senior management and directors that will be held accountable for the staff within the firm 12