The Treasury Committee has published the FCA’s internal audit reports for November 2014 covering:
- Handling of market sensitive information – which reports that significant work has been done to roll out new guidance for what constituted ‘market sensitive information’ and acknowledges that further work needs to be done to embed this within the FCA. The FCA also notes that similar steps and measures may be needed in respect of other categories of sensitive information, e.g. personal data.
- Management of crises – which reports a number of independent processes in order to enable the organisation to respond to incidents. The FCA accepts that the overall structure in place does not provide sufficient clarity within the organisation, and would benefit from implementing a single consistent framework.
- External communications handled by the Communications and International Division (C&ID) – which reports a good level of engagement between C&ID and business areas. The FCA says that several remediating actions are already in place and it will welcome recommendations in relation to how its processes, systems and controls could be enhanced, in particular in relation to adjusting the new sign-off process and knowledge transfer between staff.
Andrew Tyrie, Chairman of the Treasury Committee, commented that the Committee will continue to keep a close eye on the FCA after the Davis review illustrated some of the regulator’s institutional weaknesses.