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5 Steps for Conducting Effective Compliance Control Monitoring for Financial Firms

Compliance control monitoring is a crucial aspect of maintaining regulatory compliance for financial firms. The Financial Conduct Authority (FCA) requires firms to have robust controls and monitoring systems in place, and it is up to individual firms to implement these measures effectively. In this article, we will discuss the steps that firms can take to conduct compliance control monitoring.

1. Objectives

The first step in conducting compliance control monitoring is to define the objectives of the monitoring process. This will include identifying the areas of the business that need to be monitored, the risks that need to be addressed, and the goals of the monitoring program. Defining these objectives will help ensure that the monitoring process is focused and effective.

2. Key Risks

identify the key risks associated with the areas of the business that need to be monitored. This will help ensure that the monitoring process is comprehensive and covers all potential risks. Identifying key risks will also help to prioritize the monitoring process and ensure that resources are directed where they are most needed.

3. Establish Monitoring Processes

Once the objectives and key risks have been identified, the next step is to establish monitoring processes. This will include identifying the tools and techniques that will be used to monitor compliance and setting up systems to track and report on the monitoring results. 4. Implement Monitoring Processes

Once the monitoring processes have been established, the next step is to implement them. This will include training staff on the monitoring processes, setting up systems to track and report on the monitoring results, and conducting regular monitoring activities.

5. Monitor and Report Results

This will include tracking the results of the monitoring activities, identifying any areas of non-compliance, and taking appropriate corrective actions. The results of the monitoring activities should be reported to senior management and the board of directors, as well as to any regulatory authorities as required.

What it means for you

By following the steps outlined in this article, you can effectively conduct compliance control monitoring and meet the requirements of the Financial Conduct Authority. By conducting effective compliance control monitoring, you can maintain your reputation, reduce the risk of regulatory sanctions, and protect your customers and shareholders.

Reach out to MEMA for more information on how we can support you in addressing your control framework and policies aligned to consumer needs.

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