Compliance | Automotive Finance
A prominent financial services provider engaged our services to enhance their compliance and governance frameworks. This initiative was driven by regulatory advisories and internal assessments to ensure adherence to stringent financial regulations and to foster operational integrity.
Who is the client?
The problem
The primary challenge involved conducting a comprehensive review of the company’s adherence to regulatory requirements, particularly in the areas of brokerage authorisations, governance and compliance with the Senior Managers and Certification Regime (SM&CR). The task required addressing gaps identified in their anti-money laundering (AML) frameworks, responding to FCA ‘Dear CEO’ letters and improving internal controls and documentation.
The backstory
The review was initiated following internal assessments that highlighted potential compliance issues and in response to specific advisories from the FCA. A thorough assessment was conducted and Edmund provided targeted recommendations to align the company’s operations with regulatory expectations.
The Edmund Group Solution
Following a detailed assessment, a comprehensive remediation plan was developed to address the identified compliance issues. The plan included the following strategic improvements:
Edmund conducted a gap analysis to ensure alignment between brokerage authorisations and actual operations, thereby reducing the risk of regulatory penalties, and established enhanced governance frameworks to ensure robust oversight and active engagement from senior management;
We developed a detailed SM&CR manual to clarify roles, responsibilities and accountability within the organisation. This manual included clear documentation of compliance procedures, governance structures and oversight mechanisms;
Edmund assisted in the preparation of the Money Laundering Reporting Officer (MLRO/SMF17) annual report, ensuring that it accurately reflected the company’s AML controls, risk assessments and compliance measures;
We helped the firm address the concerns raised in the FCA's 'Dear CEO' letters by enhancing financial crime controls, conducting comprehensive risk assessments and improving policies for due diligence and ongoing monitoring. Edmund assisted with the implementation of targeted training programs to elevate staff understanding and management of financial crime risks; and
Edmund provided ongoing support for routine FCA information requests, regulatory reporting obligations and supervision visits. We advised on the development of comprehensive and accurate reports to ensure regulatory compliance.
The outcome
Strengthened internal controls and improved adherence to regulatory requirements, ensuring ongoing compliance with FCA standards;
Improved governance structures and clearer documentation, facilitating better oversight and decision-making;
Enhanced risk management capabilities, enabling more secure and informed decision-making processes; and
Through targeted training, staff gained a better understanding of compliance requirements and financial crime risks, leading to a more knowledgeable and proactive workforce.
