FCA survey of 411 corporate finance firms finds weakest spots in compliance culture

The FCA has published findings from a survey of corporate finance firms' compliance resources, flagged in its Regulatory Priorities Report. Most firms perform core compliance tasks, but the regulator wants to see more independent challenge and better-embedded compliance culture, particularly in small firms and those playing public-markets roles. If you run second-line functions in wholesale advisory firms, this sets the benchmark the FCA will apply when it engages selected firms next.

• The FCA surveyed 411 corporate finance firms and received 382 responses; 47% reported carrying out all activities covered by the survey.
• 140 firms reported that regulatory compliance does not form part of staff performance assessments, and 90 reported no whistleblower disclosure arrangements.
• 82 firms each reported that compliance does not attend management body meetings and does not report at least annually to the management body.
• 63% of firms reported a compliance function that is not dedicated solely to compliance, and 90% used some form of third-party compliance support.
• The FCA will engage selected firms further to examine the adequacy and effectiveness of their compliance resources and gaps in practice.

Executive summary

The FCA has published the results of a survey of corporate finance firms' compliance functions, carried out under a commitment in its Regulatory Priorities Report to assess those functions and their ability to challenge the business. Jamie Whitehorn, Head of…

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