Example Audit Report by ATEB suitability

Regulation & Compliance

ABC Independent Financial Advisers Ltd Annual Audit Report FSA Ref: 999999

Date:

Month_Year

Prepared for:

Mr. J. Davies & Mr. J. Brown ABC Independent Financial Advisers Ltd

Prepared By:

ATEB Business Solutions Ltd (Compliance & Business Consultants)

This audit was carried out and completed at the firm’s office at Firm_Address. Wherever possible we have examined “working papers” as evidence for our report and logged details of this accordingly. Where we have been unable to see evidence of working documents our comments will reflect this and where it is felt necessary appropriate courses of action will have been recommended.

A member of the Association of Professional Compliance Consultants Registered Office: Reg_Address  Tel: (0191) 2854938  Fax: (0191) 2854938  Email: info@atebconsulting.co.uk ATEB Consulting is a trading style of ATEB Business Solutions Limited Registered in England & Wales Reg. No. 5011108  VAT Registration: 755 927 776

Contents Contents .....................................................................................................................................................................2 Introduction ................................................................................................................................................................3 Background .........................................................................................................................................................3 Areas Not Covered By This Report..............................................................................................................................4 Executive Summary and Conclusions .........................................................................................................................5 Summary of Findings ..........................................................................................................................................5 Firm’s Compliance Grading.................................................................................................................................5 How to Improve this Grading .............................................................................................................................5 Further Audits .....................................................................................................................................................5 Key Achievements ..............................................................................................................................................6 Areas Causing Greatest Concern ........................................................................................................................6 Audit Management Information ........................................................................................................................7 Summary and Action Areas ........................................................................................................................................8 1 Organisation and Structure ............................................................................................................................ 10 2 Training and Competence .............................................................................................................................. 13 3 Strategy .......................................................................................................................................................... 15 4 TCF .................................................................................................................................................................. 17 5 Compliance Systems, Procedures and Documentation ................................................................................. 19 6 Appointed Representatives and Third Parties................................................................................................ 22 7 Business Sources and Business Processes ...................................................................................................... 24 8 Disclosure ....................................................................................................................................................... 25 9 Business Stationery ........................................................................................................................................ 26 10 Business Standards ......................................................................................................................................... 27 11 Client Money .................................................................................................................................................. 31 12 Reporting ........................................................................................................................................................ 32 13 Financial Crime and Data Security .................................................................................................................. 33

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Introduction The purpose of this audit is to build on previous compliance monitoring activity and to highlight any current and potential regulatory risks. It forms part of the wider Compliance Monitoring Programme, which in turn links in with the overall strategy to Treat Customers Fairly (TCF). Please note that ATEB has undertaken a critical analysis to allow the firm to consider what compliance issues they face and what improvements are required. The findings are based on a series of interview style questions with key members of staff, examination of various documents that support or contradict interviewee’s answers and assessment of a selection of client files, either as part of the audit or as part of ongoing monitoring. Where we have been unable to see supporting evidence, our comments will reflect this and where it is felt necessary appropriate courses of action will have been recommended. The audit assesses the current standards of the compliance regime by analysing key areas, section by section. Weaknesses are identified and prioritised actions are recommended. These should be considered carefully by senior management. To assist in this respect, each section contains succinct management information (MI), while the Executive Summary provides a brief overall summary. This is consistent with the FSA’s requirement to use MI to demonstrate TCF adherence.

Background Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vestibulum at augue augue, id lacinia lorem. Nam ornare quam sit amet tortor dignissim iaculis. Proin nec nunc vitae odio hendrerit molestie. Pellentesque nunc elit, aliquet quis venenatis eu, fermentum sit amet turpis. Suspendisse faucibus ligula at ante lobortis in tempor diam euismod. Nam commodo magna eu libero facilisis posuere. Maecenas eget arcu sit amet tellus lobortis mollis. Nulla tincidunt, tortor id sollicitudin tincidunt, felis mauris tempus dui, quis facilisis massa sapien et massa. Pellentesque malesuada fermentum justo quis sagittis. Pellentesque adipiscing mauris nisi, et mattis lorem. Donec ligula ligula, congue vitae tincidunt venenatis, commodo vel nisi. Integer vestibulum nibh ut dui iaculis nec imperdiet orci malesuada. Sed sed justo sed libero eleifend consectetur. Nunc id ipsum lorem, eu bibendum tellus. Suspendisse tempus interdum gravida. Nunc at est quam. Sed consequat pellentesque viverra. Proin non urna eu lacus ornare ultrices et at sem. Donec eros leo, pellentesque nec vehicula congue, iaculis ultrices turpis. Pellentesque arcu ligula, tempus et malesuada ac, condimentum eu elit. Maecenas ut metus eros. Vivamus feugiat, sapien vitae tristique elementum, velit lacus volutpat mi, quis semper mauris est vitae turpis. Mauris id sem eget dolor gravida facilisis. In a leo lectus. Cras laoreet lacinia felis, id porttitor neque sodales posuere. Sed imperdiet facilisis faucibus. Proin ac dui vel neque feugiat viverra id eu risus. Proin tempor vehicula dapibus. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Aliquam sed orci est, in eleifend massa. Vestibulum ac dignissim dui. Suspendisse lorem sapien, fermentum elementum fringilla vel, placerat nec turpis. Mauris gravida pellentesque tellus eu ornare. Pellentesque at est nisl. Suspendisse potenti. Praesent ante justo, pretium iaculis imperdiet at, mattis nec orci. Proin in ipsum risus, non tristique libero. Curabitur commodo dapibus ullamcorper. Etiam diam neque, tincidunt in suscipit at, euismod eu quam. Maecenas id quam odio, ac venenatis sapien. Cras sed massa dolor, ac luctus justo.

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Areas Not Covered By This Report Where the firm has permission to hold client money, we have not undertaken any examination of client money accounts. As this is a complex and very important area of compliance, if you have any concerns in this respect, please refer to your professional advisers. Neither have we examined your financial or management accounts and your adherence with the regulatory requirements relating to capital adequacy and solvency. If you are in any doubt about the requirements in this respect or have concerns about the firm’s ability to meet these requirements, you should discuss this matter immediately with your professional advisers.

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Executive Summary and Conclusions Summary of Findings Our findings point towards a generally conscientious approach to compliance, but significant vulnerabilities exist that cause concern.

Firm’s Compliance Grading The firm has been scored on the basis of the number of Unacceptable Issues raised within each section of this report. On this basis, the branch has obtained a risk rating of: 3

Concerns

Risk Rating 1 2 3 4 5

Description Excellent Good Concerns Poor Serious

on the following scale:

How to Improve this Grading To improve your score relatively quickly, the Unacceptable Issues identified should be addressed. These are summarised under ‘Areas Causing Greatest Concern’ and also ‘Further Areas For Improvement’ (see below). Then, examine the individual sections of the report for more detail as well as the ‘Summary and Action Areas’. Note in particular that the sections covering Training & Competence, TCF, Compliance Systems, Procedures & Documentation and Business Standards, carry a ‘weighting’ to reflect their compliance significance. If you therefore scored poorly in these areas, addressing the issues highlighted will have an immediate positive effect on your grading. It is important to note that while the list of tasks may seem lengthy, the majority can be addressed relatively quickly or are provided for the firm’s consideration. Remember, if the firm implements and operates good quality, well-controlled processes, compliance will be an inevitable by-product. ATEB has been advocating this approach for many years. Good Systems + Best Practice + Quality MI = Robust Compliance

Further Audits This audit report follows on from the previous audit undertaken in Month_Year.

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Key Achievements The following are some of the key achievements over the past 12 months:  Significant progress has been made to address some of the key vulnerabilities identified in last year's audit  The quality of business written is generally good and significant effort has been made to address deficiencies identified in last year's audit  Some files are now stored in a PDF format with a compliance checklist as the file header, whereby key documents can be easily accessed  The firm takes a proactive stance to compliance and treats all issues raised by ATEB (or other sources) very seriously  Monthly Compliance Meetings take place with ATEB, when all compliance related activity and issues are discussed, with actions agreed  RDR planning is well advanced  Advisers are very well qualified and have the requisite qualifications required to meet the FSA’s minimum standards, as detailed in the Retail Distribution Review  The firm makes use of the ATEB online support procedures and templates (available via the ATEB website)

Areas Causing Greatest Concern The following are areas that we believe can be improved further:               

Although file checks take place, a more systematic and consistent approach would be beneficial, with focus on high risk business Issues identified by file checks are not followed through to conclusion No external, third party file checks take place; this is important to ensure objective assessment Although much improved, there is further scope to improve the consistency of fact finding / know your client information gathering Management information (MI) / Key performance indicators (KPI) require formalising Management information (MI) reports should be fully reviewed and the reviews documented T&C systems and records in general needs improvement The firm’s Centralised Investment Proposition (CIP) should be formally documented A regular monitoring programme, such as a Compliance Calendar, should be introduced The customer risk profiling process requires update to address the issues raised in the FSA’s guidance on assessing suitability A Business Risk Management Plan should be implemented A Conflicts of Interest policy should be implemented A data security policy should be implemented Data security training should be introduced (annual) The inconsistency of suitability report quality could be addressed by implementing an automated system – please discuss with your ATEB consultant

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Audit Management Information Acceptable Issues

Unacceptable Issues

Total Number of Tasks

High Priority Tasks

Medium Priority Tasks

Low Priority Tasks

2010

112

2011

152

Low Priority Tasks

Medium Priority Tasks

High Priority Tasks 2010

2011

Total Number of Tasks

Unacceptable Issues

Acceptable Issues

100

120

140

160

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Summary and Action Areas (please refer to the individual sections of the report for supporting information) Areas for Action

Risk

As pointed out last year, JD should be maintaining financial services CPD, particularly regulatory and supervisory

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Implement a formal annual competency assessment for all advisers Implement a more structured T&C regime Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Recommended that fact finds are completed for every case; alternatively, an agenda or checklist could be used to ensure that all relevant KYC information is obtained Implement a Compliance Calendar monitoring programme and add the annual standing data check to the calendar Ensure that Key Development Plans (KDPs) exist for all advisers (ATEB recommends these are reviewed periodically throughout the year) We recommend that CPD records are reviewed more often by supervisors Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? The Centralised Investment Proposition (CIP) should be documented - refer to FSA Letter Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Consider documenting RDR strategy Implement Regulatory & Compliance Business Plan Implement Business Risk Management Plan Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? In line with recent correspondence from the FSA, it is recommended that the Centralised Investment Proposition (CIP) be formally documented Implement a Conflicts of Interest policy Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Section

Responsible

Date Completed

2 2 5 10 10 1 2 2 2 2 2 3 3 3 4 4 5 5 5 5 5 8

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Ensure that reports are fully personalised and accurately reflect whether the advice was limited or not Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Consider implementing an anti-bribery policy Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Implement data protection / data security training for all staff Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Ensure that all FPs are checked and recorded

Priority Rating

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10 10 10 2 5 5 5 13 13 13 13 5

Meaning

General Timescale

An important and serious compliance concern, posing a significant threat to regulatory compliance

Immediate to next 30 days

This relates to an area where standards are not in line with expectations or requirements

Next 6 months

Relatively minor or procedural compliance issue, although action is required and should be planned

Next 12 months

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

1 Organisation and Structure Person Interviewed: Person(s) Interviewed Is there a structure chart? If Yes, does it evidence roles and responsibilities and reporting lines? Who are the owners/controllers? Where ownership/control has changed, has the FSA been informed (where necessary)? Who undertakes the governing body functions (CF1 - CF7)? Who has overall responsibility for the apportionment of duties and for ensuring good quality system and control (SYSC)? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc a nunc felis. Donec metus ligula? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc a nunc felis)? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Comments

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In ATEB Audit File

John Smith , Jack Brown The FSA Register was updated following last year's audit and now accurately reflects all directorships Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? MB

MB MB MB & PD

PD (G60 qualified)

Evidence Seen

Action Required

Priority Rating

Accept. Standard

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ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Person Interviewed: Person(s) Interviewed Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc a nunc felis. Donec metus ligula? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc a nunc felis. Donec metus ligula? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? If yes, who? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? If yes, who? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc a nunc felis. Donec metus ligula? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Do senior management have documented job descriptions? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Comments

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc a nunc felis. Donec metus ligula?

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? See structure chart Compliance issues discussed at board meetings and minuted To PD. If regarding PD, then MB

MB Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Board meeting minutes Kept on ATEB Audit File

Evidence Seen

Action Required

Priority Rating

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Accept. Standard

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ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Person Interviewed: Person(s) Interviewed

Comments

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Do they accurately reflect job roles? Are they sufficiently detailed? Do they incorporate compliance and SYSC responsibilities? Do they incorporate TCF responsibilities?

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Evidence Seen

Action Required

Priority Rating

 -

Accept. Standard

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

2 Training and Competence Person Interviewed: Person(s) Interviewed

Comments

Do advisers periodically undertake Training Needs Analysis?

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Do advisers have documented Training & Development plans? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? What is the quality of CPD records, do they include qualification gap fill and are they tied into development objectives Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Are supervisors suitably qualified / trained? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Are advisers assessed prior to client contact (attaining competence)? Are advisers assessed periodically (maintaining competence)? Where the firm operates a Centralised Investment Proposition (CIP), are advisers competent to undertake such a role?

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Both product and procedural training takes place Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Fair. T&C post RDR will be require more stringent adherence to standards in order to achieve the Statement of Professional Standing required by RDR Although PD maintains his own records, there is no formal review Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Would refer to ATEB and use their T&C Workbook

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? PD has extensive knowledge and uses an external 'expert' to assist in constructing in-house portfolios

Evidence Seen

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Action Required

Priority Rating

Accept. Standard

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During 2012, develop T&C systems in general to achieve RDR compliance

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Consider carefully the supervisory arrangements required post RDR

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The Centralised Investment Proposition (CIP) should be documented - refer to FSA Letter

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Person Interviewed: Person(s) Interviewed

Evidence Seen

Comments

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? If yes, are meeting notes taken? Do supervisors make use of T&C related KPI / MI for regular monitoring? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Directors only Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

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Priority Rating

Action Required

Implement regular MI/KPI reporting with director sign-off

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Accept. Standard

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

3 Strategy Person Interviewed: Person(s) Interviewed Does the firm have a defined business strategy?

If yes, briefly describe the strategy If yes, is this documented in a business plan? Does the firm have a Regulatory and Compliance Business Plan? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Does the strategy address: > Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? > Adviser charging fee structures and service propositions? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

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Comments

Evidence Seen

No specific strategy, although objectives are clear given size of organisation. It would nevertheless be worthwhile at least documenting progress towards RDR

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This is not documented however Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

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Action Required Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Implement Regulatory & Compliance Business Plan Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Priority Rating

Accept. Standard

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ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

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Person Interviewed: Person(s) Interviewed

Comments

Evidence Seen

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Do you have any trading styles? If yes, have they been notified to the FSA and are recorded on the FSA Register?

Action Required

Priority Rating

Accept. Standard

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

4 TCF Person Interviewed: Person(s) Interviewed Have you reviewed and updated your TCF Gap Analysis? Have you assessed your TCF standards using the FSA's Self Assessment tool (available from the FSA website)?

Comments

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Do you perceive any potential weaknesses in your TCF regime or further improvements that could be made? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? This is a useful and provides a benchmark Numerous examples - staff training, formalising investment process, client segmentation, structured client reviews, client file organisation structures. RDR strategies will further enhance TCF standards

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Improved MI / KPI covering all FS business would be beneficial Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Production and review of MI / KPI Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Low volumes

Evidence Seen

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Action Required Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Priority Rating

Accept. Standard

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ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

5 Compliance Systems, Procedures and Documentation Person Interviewed: Person(s) Interviewed Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Do these include detailed procedures for: > consectetur adipiscing > consectetur adipiscing > consectetur adipiscing > consectetur adipiscing > consectetur adipiscing

> consectetur adipiscing

> Reviews > Whistle blowing > Execution only/non advised/insistent client Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Do all relevant staff members know how to access the procedures?

Comments

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? NA Maintained by JB Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Quarterly Investment View is really the only form of FP and must be checked prior to issue Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Business processed in line with compliance checklist linked to back office system. Some client files are stored as PDF documents with links to key documents, although this is not the case across the board Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? The requirements have been discussed with ATEB and rules explained Centralised source established since last audit

Evidence Seen

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Action Required

Priority Rating

Accept. Standard

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Implement formalised review procedures as part of RDR strategy

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Ensure that all FPs are checked and recorded

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ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Person Interviewed: Person(s) Interviewed Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Are specific procedures in place for any Centralised Investment Proposition (CIP)? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Does the firm have client categorisation procedures? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Is there an anti-bribery policy in place (Bribery Act 2010)? Do you keep up to date with regulatory news and information (FSA website, compliance newsletters, etc)? Is important information obtained from the above circulated to all relevant staff?

Comments

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? No specific procedures in place, although there is a defined process

ATEB will vet all FPs Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

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Evidence Seen

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Priority Rating

Accept. Standard

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Action Required

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Implement a Conflicts of Interest policy

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Consider implementing an anti-bribery policy

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ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

6 Appointed Representatives and Third Parties Person Interviewed: Person(s) Interviewed Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Are specific procedures in place for any Centralised Investment Proposition (CIP)? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Does this correspond with the FSA register? Do you receive any other introductions from third parties (e.g. websites, solicitors, banks, local business, etc) If yes, do you have a list? Do they have written agreements? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Comments

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Evidence Seen

Action Required

Priority Rating

Accept. Standard

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ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

Person Interviewed: Person(s) Interviewed

Comments

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Evidence Seen

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Do any of the above have multiple operating sites? Are you aware of any issues with any of above?

Action Required

Priority Rating

Accept. Standard

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

7 Business Sources and Business Processes Person Interviewed: Person(s) Interviewed

Comments

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? If yes, are they formally approved and trained? Can staff distinguish between advised and non-advised sales?

Evidence Seen

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Action Required

Priority Rating

Accept. Standard

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

ABC Independent Financial Advisers Ltd – Annual Audit Report © ATEB Business Solutions Ltd | Month_Year

8 Disclosure Person Interviewed: Person(s) Interviewed

Comments

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Do you use more than one version of TOBA? Do you use any Initial Disclosure Documents? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Are disclosure documents regularly reviewed and signed-off? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Is there one for advised and non-advised business?

Retail, Professional and Groups

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Evidence Seen

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Action Required

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Priority Rating



Accept. Standard

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

9 Business Stationery Person Interviewed: Person(s) Interviewed

Comments

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Is the firm's letterhead compliant? Is the firm's compliment slip compliant? Lorem ipsum dolor sit amet? Lorem ipsum dolor sit amet, consecte? Lorem ipsum dolor sit amet? Lorem ipsum dolor sit amet? Lorem ipsum dolor sit amet?

Evidence Seen

Action Required

Priority Rating

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Not used

Includes confidentiality notice

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Accept. Standard

Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

10 Business Standards Person Interviewed: Person(s) Interviewed Lorem ipsum dolor sit amet? Is there a robust file checking process in place for all business (new business and client reviews) and does this include external file checking/audit? Are files checked on a risk basis? If so, how are they selected and what percentage of files is checked? Lorem ipsum dolor sit amet? Lorem ipsum dolor sit amet? > ipsum dolor sit amet > ipsum dolor sit amet > ipsum dolor sit amet > ipsum dolor sit amet > Soft facts (aspirations, ideally using client's own words) From the file checks undertaken, what is the general standard of fact finding (Good / Fair / Poor)? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Comments

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Evidence Seen

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Ensure that call cases are checked for material compliance and that all important case documents, especially fact find form/notes and suitability reports are fully checked / proof read prior to issue

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ATEB select files on risk / cross section basis (10% per annum)

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Generally, but see notes above about need to ensure completion of fact find

Fair - Good

Accept. Standard

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Priority Rating

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Action Required

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Comments

Evidence Seen

There is a methodology in place which utilises external expertise combined with JH's knowledge and experience. The process, and importantly the quality controls therein, should be formally documented, in line with the FSA's recently initiated review of CIPs

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Person Interviewed: Person(s) Interviewed

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If so, who is responsible for central research? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Are pre-defined suitability Reports/D&N letter templates used? Do / Are Suitability Reports / Letters: > ipsum dolor sit amet > Adequately document the client's objectives, needs, priorities and goals? > Clearly explains, in personalised form, the reasons for the recommendations? > ipsum dolor sit amet > ipsum dolor sit amet

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Quarterly investment strategy reviews

Combination of in-house templates and ATEB Suitability software

Action Required

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Priority Rating

Accept. Standard

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Person Interviewed: Person(s) Interviewed > ipsum dolor sit amet > ipsum dolor sit amet > ipsum dolor sit amet > Include clear and unambiguous Attitude to Risk statement and explain clearly what this means? > ipsum dolor sit amet > ipsum dolor sit amet

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> ipsum dolor sit amet > ipsum dolor sit amet > Use the client's own words to add relevance (benefit statements) > ipsum dolor sit amet From the file checks undertaken, what is the general standard of suitability report assessment (Good / Fair / Poor)?

Comments

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Not always

The report needs to be accurate in this respect not always the case

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Usually Fair – Good. Ensure that all reports are fully checked prior to issue to avoid relatively simple mistakes

Evidence Seen

Action Required

Ensure that reports are fully personalised and accurately reflect whether the advice was limited or not

Priority Rating

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Accept. Standard

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

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11 Client Money Person Interviewed: Person(s) Interviewed

Comments

Evidence Seen

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Does the firm hold client money? Is this reflected correctly on the FSA Register? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Action Required

Priority Rating

Accept. Standard

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks

12 Reporting Person Interviewed: Person(s) Interviewed

Comments

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Is this person confident that (s)he fully understands RMAR requirements? Has (s)he undertaken RMAR training?

Evidence Seen

Action Required

Priority Rating

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Accept. Standard

Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

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13 Financial Crime and Data Security Person Interviewed: Person(s) Interviewed Do all staff members receive periodic antimoney laundering (AML) training? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Is the HM Treasury Sanctions List periodically checked? Has the Money Laundering Reporting Officer (MLRO) produced the Annual MLRO Report? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Is there a security policy in place when customers request information over the phone e.g. confirms DOB? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? If yes, has it been tested? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Comments

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JD Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc? Taken away and shredded Credit cards not accepted Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc?

Evidence Seen

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Priority Rating

Accept. Standard

All staff to receive updated anti-money laundering and data security training

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Implement data protection / data security training for all staff

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Action Required

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Management Information Number of Acceptable Issues

Number of Unacceptable Issues

Total Number of Tasks Identified

Number of High Priority Tasks

Number of Medium Priority Tasks

Number of Low Priority Tasks