ARROW visits define the regulatory relationship

Firms regulated by FSA are subject to formal, broadly-based risk reviews, under the ARROW branding. The results of the ARROW review are used to define the parameters of the ongoing FSA relationship, including the intensity of supervision.

FSA looks at risk across all relevant categories, from financial and operating controls to political risk and corporate culture; and insists on discussions with functional heads, from business units to support departments, from the Chief Executive to the Non-Executive. FSA is increasingly also incorporating ‘theme’ issues (e.g. Treating Customers Fairly, MiFID implementation) into the ARROW reviews, both for efficiency’ sake and to check firms’ preparedness as well as their risk profiles.

The ARROW process is rapidly gaining recognition and adoption, in part or in whole, from key regulators in other jurisdictions: even firms not subject to the UK regime see great benefits from this type of holistic review.

Hosting an FSA ARROW visit without proper preparation is usually an embarrassing and expensive mistake, in terms of servicing future regulatory demands based on an unflattering FSA view.

Working with you to make your ARROW review as successful as possible, we can:

• Review your business and controls operating model to highlight risks to FSA’s statutory objectives;
• Prepare individual senior managers for FSA discussions;
• Assess likely issues arising from your ICAAP;
• Provide feedback on management information and exception reporting processes;
• Make recommendations around documentation and process standards for risk mitigation;
• Create a draft remediation plan, in order for the firm to be planning and acting on the most important risks before FSA arrives.

For more information about Chase Cooper Compliance Solutions, please our compliance team or complete our contact form.