The importance of FCA authorisation in the UK finance and fintech industry can’t be over stressed enough. If your company runs its services into this industry, it needs to be authorized by the FCA to be able to carry out regulated financial service operations in the UK. FCA authorisation ensures that your company meets the minimum standards and continues to meet them for as long as it remains authorized by the FCA.
Being authorized by the FCA is certainly a significant milestone for every financial-related company. But you need to understand that the journey doesn’t end with getting authorized to deliver regulated financial services. To ensure smooth operations in this industry, you need to get familiar with certain compliance challenges post-FCA authorisation and understand the best approaches to tackling them.
1. Regulatory reporting
As earlier mentioned, FCA authorisation is a milestone that every financial-related company in the UK needs to achieve. After achieving this milestone, one important responsibility you need to take care of regularly is ‘regulatory reporting.’
Regulatory reporting in the finance and fintech industry is very important for many reasons. First, taking on this responsibility is very crucial for regulators to maintain the stability and integrity of the financial system. Furthermore, this reporting also provides regulators with the much-needed.
Today, many companies face a lot of challenges when it comes to meeting FCA regulatory reporting requirements. Some common challenges often faced by companies after FCA authorisation include:
- Lack of proper ongoing monitoring program
- Ineffective controls for regulatory reporting
- Lack of appropriate regulatory reporting technology to reduce manual effort and eliminate costly human errors.
- Lack of high-quality technology infrastructure
If you’re currently experiencing any of these aforementioned challenges, the best you can do is to hire a suitable FCA compliance consultant, such as MEMA Consultant. This consulting firm will provide you with the necessary guidance on how to create the right regulatory reporting and have them submitted accurately and at the right time.
2. Staying up-to-date with regulations
After FCA authorisation, another thing your firm needs to do is to keep up with the continuously evolving compliance framework and requirements in the industry. Yes, for your company to stay in compliance with all FCA regulations, it needs to stay updated with regulatory changes.
With the best consulting firm, you can always get the necessary guidance on how to stay updated with FCA’s ever changing compliance regulations.
3. Challenges with AML implementation
One effective way FCA is currently fighting against financial crimes, such as terrorist financing and money laundering, is through its anti-money laundering (AML) framework. As a company running its business in the finance sector, your financial institution certainly needs to remain compliant with the AML framework. Compliance with the AML framework won’t only protect your financial system’s integrity. In addition, it’ll also assist you in avoiding various regulatory penalties and building trust with your partners and customers.
As amazing as the AML framework is, it’s worth noting that its regulations are always evolving. Although challenging, your company certainly needs to stay updated with these changes to avoid reputational damages, monetary penalties, and others. One way to keep up with the ever evolving AML compliance framework is by hiring a reliable compliance consultant, such as MEMA Consultant. This company will offer you AML compliance support and advise you on how you can address the different challenges you may be experiencing with AML implementation.
You can visit MEMA Consultant’s official website today to better understand how you can meet your regulatory and compliance goals after FCA authorisation.