Stage three: Follow-up work
Not all firms will have any follow-up work, but if you do it usually takes two forms:
If the FCA think there are significant risks in your firm, they may decided to undertake further supervisory work with you to explore the issues of concern in more detail and provide more detail about the actions they expect you to take.
This supervisory work will involve more detailed discussions with your firm around the potential risks identified during the review. They will review customer files, processes, complaints handling, training and competence and your management. They will give you more detailed feedback and outline actions that need to be taken and areas of good and poor practice noted.
This work will take one of two forms: either a one-day visit to your business or a conversation over the phone with us.
The FCA will also check what they found at the review stage with a random sample of firms. There are two reasons for doing this. Firstly, they wish to test the effectiveness of their supervisory approach and ensure they are taking the correct supervisory decisions. Secondly, they need to check that the information received during the reviews is a true reflection of what happens within your firm.
The verification work will involve more detailed discussions with you about your business and how you manage and reduce risks and they may review a small sample of customer files and your processes and procedures. They will be open and give you feedback about what they find.