Client
A parent company seeking assurance of subsidiary’s systems and controls
Objective
The parent company is a regulated financial services entity based outside of the UK with an authorised e-money institution in the UK. The subsidiary outsources some important functions to the parent company, including finance. The boards of the parent company and the subsidiary wanted an assessment of the subsidiary’s (the EMI’s) systems and controls in relation to regulatory compliance.
Approach to engaging with the client
fscom’s regulatory compliance specialist assessed the EMI’s safeguarding arrangements, financial resources, latest regulatory returns and communication with clients. It became clear that the requirements of the UK legislation and guidance were not well understood where the delivery was outsourced to the parent company function.
Outcome
In addition to providing a detailed written compliance audit report with prioritised recommendations, fscom advised the boards of both entities on their regulatory obligations and next steps, which included reporting the breach to the FCA and developing and implementing a remediation plan.
