April 2007

FSA finds many small firms that employ compliance consultants are not acting on the advice they are given

This press release (issued on 17 April 2007) relates to some work FSA have recently done on the use of compliance consultants by smaller firms. They visited 22 firms who used compliance consultants; it appears that over a third of these were not acting on recommendations from their consultants that would have improved their regulatory position. There is some further information on the small firms website which makes the point that consultants are not a panacea and a firm cannot contract out its compliance responsibilities. But there are some good practice examples showing how the right relationship with a consultancy can provide positive benefits in terms of compliance.

Press release | Website material | Factsheet