AMI aims for clarity on FSA inspections

Ramesh Sharma

March 25, 2006

With the regulator currently undertaking mystery-shopping exercises within the industry, the importance of being prepared for an inspection has never been greater.

The factsheet is aimed at helping small firms get their systems and mechanisms in place prior to a visit and giving them an insight into how the FSA will approach an inspection.

Rob Griffiths, associate director of AMI, commented: “The majority of AMI members are small firms and a visit from the FSA could be a stressful experience. Preparation is the key and the more firms know about what to expect, and what information they need to make available to the regulator, the less anxious they should be on the day of the visit.”

The factsheet aims to clear up some of the queries that brokers might have before a visit, for example why their firm might have been chosen, how to prepare and what actually happens.

It also has a breakdown of the FSA’s approach as a regulatory body and a risk-profiling tool to identify potential weaknesses.

Brian Poole, mortgage adviser at AM Ruthven & Associates, said: “Brokers always have the notion that FSA inspections are confrontational so if what happens can be cleared up it can only be a good thing.”

Tony Catt, an IFA, said: “It always depends on who is doing the inspection and if they understand your business, rather than just someone who will just tick boxes.”

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