FCA ‘Looking To Increase Senior Management Accountability’

‘Attestments’ Increasingly Being Used In Cases

05.11.2013

The Financial Conduct Authority (FCA) is looking to increase the accountability of senior managers in financial firms by asking them to make written statements which can be used as part of enforcement when necessary, according to reports.

Financial News reports that industry experts have increasingly seen the regulator request statements referred to as attestments in relation to the controls and processes in place at their organisations.

It is believed such statements are then being used as part of efforts to build cases against larger firms thought to be breaching rules, with the ultimate aim to then use them to hold individuals within the bodies to account.

Reports on the issue have come after the FCA recently published its thematic review of the risk management systems and processes used by asset management and platform firms to tackle money laundering and bribery.

Expert Opinion
Such steps make it all the more important for financial services organisations to ensure their policies are robust and ensure the bodies are complying with all of the necessary regulations.

"In addition, it means that individuals asked to provide such statements will need to ensure they use the required care and attention when putting together documents which could have major consequences in the long term particularly if they find themselves under FCA Enforcement investigation or are struggling to be re-approved by the FCA if they move firms."
Sarah Wallace, Partner