Compliance Audit Pack


A complete Supervisor IFA audit pack for an all day visit to a firm of less than 10 IFAs.
complete with traffic light system and risk flags, for system audit and staff assessment.
Updated January 2014
56 pages and over 9,000 words in editable word text.


“Show me don’t tell me”
No one gets a chance to explain themselves in front of the regulator or ombudsman.
If it ain’t documented then it doesn’t happen like you say it does.
1. Systems and Controls audit (2-3 hours)
• The purpose of this audit is to ensure the Director/Principal (or designated individual) can demonstrate sufficient awareness of systems/controls within their firm, and that they can display awareness of the performance of all Registered Individuals operating within the business.
• The Systems & Controls audit is undertaken with at least one Director/Principal of the AR firm (or equivalent level designate).
• During the audit it may be necessary to view certain documents (e.g. business stationary/supervisory records) therefore documents such as these should be readily accessible.
• Further detail with regard to the content of this audit is provided via the attached document ‘Systems & Controls Audit Content’

2. Document Checks (30 minutes)
A number of client files will be reviewed by the Quality Assurance Manager with a view to validating the sequence of events and chronology of the advisory process. The files to be reviewed are randomly selected and not normally notified to the firm in advance of the visit.

3. Skills Assessment & 1:1 meeting (2 hours per individual)
• A Competency Review meeting will be undertaken separately with each individual within the AR firm holding advisory permissions. These are conducted in two parts – a Skills Assessment, where the individual’s knowledge and application of the advisory process are tested, and a 1:1 review, where new business book data and KPIs relating to their advisory activity is reviewed and discussed.
• Further detail with regard to the content of this section of the meeting is provided via the attached document ‘Skills Assessment & 1:1 Meeting Format’.

4. Summary of meeting/Close (15 minutes)
A brief summary of the results of the Competency Review meeting with the Director/Principal (or designated individual), along with confirmation of any action points agreed throughout the course of the day.
Note: All timings approximate, and do not include breaks