Amidst the wake of a wave of Financial Conduct Authority (FCA) newsletters since October 2019, investment firms were warned over stringent oversight of transaction reporting, following growing concern over data quality issues and failures in control. The FCA has continued to reiterate that the accountability for reporting lies with the investment firm, and firms should not be relying on acceptance rates as a standard for assessing completeness and accuracy.
At the same time, regulators are closely monitoring the effects of outsourcing by investment firms. The Bank of England’s Outsourcing and Third-Party Risk Management Consultation Paper (December 2019), further indicates a regulatory focus on compliance reporting after the pandemic.
As the honeymoon period of post-MiFID II leniency is expected to come to an end, we anticipate increased scrutiny by regulators around the quality of regulatory reporting, bringing intensified audits and potential fines for investment firms failing in their reporting obligations.
Download this paper to discover:
1. The historic reasons for outsourcing
2. The areas investment firms are getting wrong
3. What the regulator will be looking for
4. How firms can mitigate outsourcing risks
5. How Capco can help.
For more information about this paper or Capco’s regulatory services, please contact the author, Dhrupal Shah.