What should businesses do if a regulator comes knocking? What are the best practices when it comes to how to act during an investigation? And how can organisations maximise their chances of getting the best outcome with as little disruption as possible?
Traditional banks have long understood that the stringent nature of FS regulation means strong relationships with regulators are a huge asset. Newer entrants into the industry can learn from this approach – whether they are fintechs; businesses from retailers to dentists that now fall under the FCA’s control because they process payments; or challenger banks that are now under the control of both the PRA and FCA.
These relationships, and the knowledge needed to build them, are especially important if or when the worst comes to the worst and the business is investigated by the regulator. The wrong action, or reaction, can have a huge impact on the result of any investigation. If regulators sense they are being given the bare minimum or the organisation involved is being overly defensive, the result can be costly in-depth investigations that take years to resolve and end in large fines.
So what should businesses do if a regulator comes knocking? What are the best practices when it comes to how to act during an investigation? And how can organisations maximise their chances of getting the best outcome with as little disruption as possible?
This article was first published in Raconteur on 6 April 2020. Read the full article here.
