Chapter 2 - Preparing Compliance Reports

Question 1

What are 3 broad categories for record types?

Answer 1

1. Basic records
2. Periodic records
3. Non-Essential records

Question 2

What are examples of periodic records?

Answer 2

• prospectus and instruments of constitution
• staff records for recruitment, fit and proper tests, references, credit checks.
• training and CPD
• statements issued to customers
• reports and accounts
• knowledge base
• websites

Question 3

What are examples of non-essential records?

Answer 3

• supplier invoices
• management accounts - forecasts/projections
• adviser/client agreements

Question 4

What are the common methods used when conducting a compliance monitoring review?

Answer 4

• staff interviews
• observing processes in action and evidence of control operations
• testing statistically based samples of transactions.
• review previous reports, audit reports, KPIs, breach reports, complaint reports.
• reviewing specific system-produced transaction reports .