The challenges you face
In an increasingly interventionist, zero tolerance regulatory environment, identifying legal and regulatory risk within financial services business areas is critically important.
To manage those risks, financial services firms may require strategic support which is based on technical expertise combined with a clear understanding of regulatory enforcement risk:
- to identify and diagnose regulatory issues and risks within business areas;
- in consideration of corporate M&A deals; and
- in response to regulatory scrutiny and investigation.
The extent and scope of legal and regulatory risk is diverse and a clear risk based assessment is often needed to allow businesses to make informed decisions, to develop and manage risks and develop remedial strategies and solutions.
What we offer
We have a strong reputation for assisting clients in identifying and reviewing regulatory risks across financial services businesses. Based on our wide experience, we have developed a review process that takes a comprehensive and commercially-savvy approach to identifying regulatory business risks.
Our Financial Regulation team is not just a team of lawyers, we also have Compliance Professionals that specialise in governance, risk and regulatory compliance. It is an important part of our offering that our lawyers and our compliance team work side by side as part of a single team so that we can provide an integrated service.
As part of our legal and regulatory risk review process, our Regulatory Risk and Compliance Practice Group can provide Regulatory Due Diligence to support:
- Pre Transaction Due Diligence (for either the purchase or sale side);
- Back Book sampling;
- Quality of advice reviews;
- Quality of advice reviews.
Successfully identifying risks can involve the review of a significant volume of documents, on site visits and close liaison with business teams. We have a team of paralegals that work within our Regulatory Risk and Compliance Practice Group under the supervision of our Compliance Professionals to offer an effective, high quality and cost efficient service.
We will produce a detailed report, setting out recommended control improvements, timelines, and an analysis of residual regulatory and legal risk with RAG ratings. Our reports will be phrased as legal advice therefore gaining the benefit of privilege.
We will work with you to assess each risk in line with your internal risk framework, before suggesting – and helping to implement recommendations for reducing your exposure.
The expertise you need
Our approach is flexible and can be tailored to suit specific client needs and demands. The scope of our Regulatory Due Diligence provides review of:
- Regulatory permissions and authorisations and their coverage of the products and services provided, appointed representatives and third party suppliers, including historic permissions;
- Relationships and correspondence with regulatory bodies including periodic returns, non-routine correspondence and breaches of regulatory reporting requirements;
- Business conduct and compliance manuals, internal policies and procedures and compliance monitoring activity;
- Compliance infrastructure and oversight, including board and committees set up, risk and governance framework, lines of defence model, training and competency and record keeping polices and procedures;
- Approved Persons and Senior Managers Regime: allocation of control functions and certification, roles and responsibilities map, CVs and statements of responsibility and processes for regulatory training;
- Business servicing and outsourcing arrangements including collections practices and complaints process adherence; and
- Procedures for the monitoring and compliance of outsourced service providers.
If you would like to know more or would like us to come and talk to you further about what we can offer, please contact us.