Compliance audits are becoming increasingly important for all financial services companies. Audits not only ensure that the policies and procedures firms have put in place remain up-to-date and that companies are compliant, but many investors also now insist that fund managers undergo regular and independent reviews. This provides investors reassurance that the companies’ operations are compliant and sound. Compliance audits also play a critical role in the corporate governance framework of a business, protecting against operational risk, assisting with strategic decision-making and improving overall operational performance.
Performing a compliance audit is now one of Laven Partners’ most in demand compliance services, requests having doubled over the last two years.
Two Regulators’ Approach to Internal Audit: the FCA (UK) and the MAS (Singapore)
Regulators, such as the Financial Conduct Authority (“FCA”) in the UK, have long required that companies regularly assess their internal processes. At Laven Partners, we recommend an independent review to provide an expert opinion. Regulators also conduct thematic reviews in different regulatory areas, such as financial crime, to ensure that firms have sufficient processes and that senior management has appropriate oversight. The FCA’s recommendations are constantly evolving and it can be difficult in practice for some companies to keep up-to-date with the requirements in every area of compliance.
Laven Partners’ Head of Compliance Petra Hollis says: “We have been offering compliance audit service for years however the sheer volume of recent regulations around the world has convinced many clients of the value of an independent assessment. Our audits not only include observations of systems but we also provide recommendations on how to make improvements in a practical and efficient manner. Our clients also place importance on the final certificate they receive from us which helps them with any investor due diligence reviews.”
Meanwhile, the 2012 enhancements to the Singaporean regulatory framework for fund management companies mean that Singaporean managers are now required to carry out regular internal audits. Laven Partners is in regular discussions with the local regulator, the Monetary Authority of Singapore, in relation to the Singaporean rules. Jerome Lussan, CEO at Laven Partners,comments: “We have been able to bring to Singapore our long-standing experience of carrying out compliance audits in Europe, combining our regulatory expertise and insights from our operational due diligence team. This has been appreciated by our local clientele as the industry in Singapore is still emerging and adapting to new rules so there is little prior expertise in these matters. It has also helped international investors invest in local managers.”
Please contact Laven Partners if you are interested in our compliance audit services, or for any other compliance queries you may have : firstname.lastname@example.org – +44 (0)207 838 0010 (UK) or +65 6631 2889 (Singapore).