The governance arrangements of an FCA regulated firm is crucial to its regulatory success. A poorly run FCA firm with a poor governance structure will not have long-term success in the regulatory environment.
OSS can assist you in developing a governance framework that is suitable and appropriate to the size and nature of your firm.
The ICAAP and ICARA are integral processes and documents on how the firm manages its risks. This is no doubt a time consuming process for a firm’s senior managers. The ICAAP and ICARA are not one-off annual processes, but are central to how the firm operates.
It is important for your ICAAP or ICARA to fully reflect the risks your firm faces and poses. Failure to get this right can lead to the setting of prohibitive capital requirements by the FCA, which can take years to be reduced.
OSS can provide support and guidance on your firm’s ICAAP or ICARA, whether that be developing the process from the start, or critically reviewing your current documentation to ensure it fully captures the risks of the firm and meets the expectations of the regulator.
Underpinning the ICAAP and ICARA process is the firm’s Risks and Controls Register, which importantly, includes the Net Financial Residual Risk. OSS can help develop and/or review this register as appropriate and suitable to your firm.
A regulatory financial model should fully integrate a firm’s profit and loss, balance sheet, regulatory capital, and liquidity/cash flow. OSS can help develop and/or review your firm’s regulatory financial model to ensure prudential regulatory requirements are adhered to.
A firm’s regulatory financial model is not complete unless the capital and liquidity positions have been stressed under different scenarios, including a combination of stresses. OSS can discuss appropriate stresses and scenarios for your firm, based on the regulatory financial and business model. OSS can also guide your firm through reverse-stress test scenarios.
The Financial Conduct Authority (FCA) has published findings they have noted regarding Client Money and issues with the Client Assets Sourcebook (CASS). Alongside this, they
Do you need help with compliance? Get in touch to discuss how we can support your business.
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