FSA calls for networks to improve control over ARs

Amanda Jarvis

December 19, 2005

A sruvey conducted by the FSA has found a number of potential shortcomings in areas such as the level of compliance resource in Principal firms, the quality of desk checks and field visits to check ARs’ compliance, the use of computer systems for monitoring ARs and how far networks operated a risk-based approach to monitoring of ARs.

The FSA is publishing a Factsheet suggesting how networks can improve practice in three main areas: compliance and the approach taken to supervising ARs, admission to membership, and documented procedures and management information.

Alison Hewitt, Head of Department, Retail Firms Division, FSA said: “We expect networks to apply appropriate controls on their ARs so that these firms maintain the same standards as directly authorised firms in their dealings with customers. Our emphasis at this stage is to help networks improve and the Factsheet is designed to help achieve this. However we will be carrying out
further work next year to monitor the position and will take appropriate action where concerns remain.”

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