REGULATORY ACCOUNTANCY
We have come across cases where firms have been in breach of their Regulatory Capital Requirement without realising.
Does your accountant understand FSA compliance?
Is your accountant asked to provide reports that are only just within their remit?
Does your accountant monitor future capital requirements?
Do you know you could be in potential breach of capital requirements?
Often it falls to the finance or accounting team to provide reports on ICAAP, ILAA etc without proper consideration of the above questions. Many Gabriel submissions contain serious errors under Capital Adequacy Returns. Without a clear understanding of FSA compliance it may be that reports produced are of little value. Compliance needs to be an integral part of all financial institutions’ departments and that has to include accountancy. By combining accountancy expertise with compliance expertise you can vastly improve the validity of your future capital monitoring, risk mitigation plans and report generation. You need someone who can not only prepare management accounts for operations but also help fulfil regulatory requirements. This pro-active approach is a cornerstone in building modern business practices for financial companies.
By using TCC to perform a monthly or annual review and reporting writing service for you, you can ensure the validity and value of your reports.
If you would like to discuss how TCC can help you adopt better business practices, please call us on 020 3008 6020 or email info@theconsultingconsortium.com
More on ILAA & ICAAP
Far from being the latest Swedish pop import, ILAA & ICAAP are instead time consuming, resource draining, yet vital tools of risk assessment. It may be that currently responsibility for these falls to your finance team, but are they always best placed to provide the necessary level of knowledge and understanding of the FSA’s expectations? It’s not the knowledge of an accountant you need, what you need is a regulatory accountant with compliance exposure. An independent third party, such as TCC, can provide insight and value to the process of preparing these assessments.
The purpose of the ICAAP document is to provide the Board with ongoing assessment of the firm’s risks, how the firm intends to mitigate those risks and how much current and future capital is necessary having considered other mitigating factors. It is also the document which explains to the board your firm’s internal capital adequacy assessment process.
ICAAP should build on existing processes and procedures that already form part of your risk management but should be structured in such a way as to meet with the FSA’s expectations on capital adequacy and risk management. TCC has extensive experience in this area and can help to ensure this process is not only as smooth as possible, but also adds value with regard to your risk mitigation.
Similarly, a poorly constructed ILAA can waste time and effort. Engage TCC’s experts to ensure your finance department isn’t drowning under this extra responsibility and instead can concentrate on what they do best, whilst we do what we do best. To discuss further please call us on 020 3008 6020 or email info@theconsultingconsortium.com
