COVID-19 prompts FCA scrutiny of firms’ contingency plans
What’s happening?
The FCA recently announced that it is working closely with the Bank of England and the Treasury to ensure that the financial services sector responds effectively to the current COVID-19 coronavirus outbreak. The regulator is also talking to individual firms and trade associations to identify issues they may be facing – and working with them to resolve these.
What do you need to do?
The FCA expects all firms to have contingency plans in place for dealing with major events and is currently reviewing the plans of a wide range of firms. This includes looking at their assessments of operational risks, their ability to continue operating effectively, and what steps they’re taking to serve and support their customers.
If you’re anything less than 100% confident your business continuity plans will stand scrutiny in the light of events like the current coronavirus outbreak, you should consider reviewing them as a matter of urgency.
The FCA says it expects firms to take all reasonable steps to meet their regulatory obligations. For example, it would expect you to be able to enter orders and transactions promptly into the relevant systems, use recorded lines when trading, and give your staff access to the compliance support they need. If you can achieve this using backup sites, or with staff working from home, the FCA has no objection to it in principle.
How can we help you?
If you’d like further information, to arrange a review of your business continuity and contingency planning, or to discuss any other aspect of compliance, our expert team is here to help. Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.