Repeat findings with businesses’ compliance monitoring
We are reminding regulated businesses to make sure they have adequate and effective compliance monitoring in place, after we identified a number of repeat findings during examinations.
We conducted a thematic examination on compliance monitoring, which resulted in 41 findings where businesses were not meeting their statutory obligations and regulatory requirements. We assessed whether compliance monitoring plans and activities enabled businesses to demonstrate that compliance risk was being managed effectively.
Some of the key findings related to policies and procedures, record keeping, corporate governance, and risk assessments. Only one of the 11 regulated businesses we reviewed could demonstrate compliance with the regulatory framework. This included banks, fund services businesses, investment businesses and trust company businesses.
Many of the findings were similar to those we have identified in previous examinations on this subject, highlighting that a number of the businesses were not adhering to the guidance we published in December 2013.
We are sharing our feedback and encouraging all businesses to review it, in order to assess their own compliance monitoring arrangements.
As part of our ongoing examination programmes for 2021, we will continue to review the adequacy and effectiveness of compliance monitoring plans and activities.