5 Common FCA Compliance Mistakes and How to Avoid Them

For financial firms, ensuring compliance with the Financial Conduct Authority (FCA) is critical to maintaining trust and avoiding costly penalties. However, compliance can be complex, and even well-meaning businesses can make mistakes that lead to serious consequences.

In this blog, we’ll explore five common FCA compliance mistakes and explain how partnering with Expert Analysis Group can help your firm avoid them.

1. Operating Without Proper Authorisation

Some firms unknowingly engage in regulated activities without the necessary FCA authorisation, often due to a lack of understanding about what qualifies as a regulated activity. Operating without authorisation is a criminal offence and can result in heavy fines, reputational damage, and even imprisonment.

How to Avoid This Mistake:Becoming an Appointed Representative through Expert Analysis Group provides a legal and efficient way to carry out regulated activities without direct FCA authorisation. We’ll guide you through the process to ensure full compliance.

2. Inadequate KYC and AML Procedures

Failing to implement robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures is one of the most common compliance mistakes. This can expose your firm to financial crime risks and lead to FCA penalties.

How to Avoid This Mistake:As part of our onboarding process, Expert Analysis Group conducts comprehensive KYC and AML checks to ensure your firm meets FCA standards from the start. We also provide policies and training to keep your procedures up to date.

3. Poor Record-Keeping and Reporting

The FCA requires firms to maintain accurate records and submit regular reports. Inadequate record-keeping or missing deadlines can result in regulatory breaches and harm your business’s credibility.

How to Avoid This Mistake:Expert Analysis Group helps Appointed Representatives streamline their record-keeping and reporting processes. We provide clear guidance and support to ensure your firm remains compliant with FCA requirements.

4. Failing to Conduct Ongoing Compliance Reviews

Compliance is not a one-time activity. Firms that neglect ongoing reviews and professional development for their staff risk falling out of step with FCA regulations, especially as rules evolve.

How to Avoid This Mistake:At Expert Analysis Group, we provide quarterly and annual compliance reviews, along with mandatory professional development modules for your team. This ensures your firm stays up to date with the latest regulations and best practices.

5. Not Addressing Conflicts of Interest

Conflicts of interest, if not managed properly, can harm your clients and lead to regulatory scrutiny. Firms must have clear policies and procedures in place to identify, manage, and disclose conflicts of interest.

How to Avoid This Mistake:We provide Appointed Representatives with tailored policies, including conflict of interest management, as part of our compliance support. These resources help you maintain transparency and protect your clients’ interests.

How Expert Analysis Group Helps You Avoid FCA Compliance Mistakes

With over 70 years of combined experience, the team at Expert Analysis Group specialises in guiding financial firms through the complexities of FCA compliance. By becoming an Appointed Representative, you’ll gain access to our expertise, resources, and ongoing support to ensure your firm operates within FCA rules at all times.

Take the Stress Out of FCA Compliance

Avoiding FCA compliance mistakes requires proactive planning, robust policies, and expert guidance. Whether you’re a new firm or an established business looking to streamline your compliance processes, Expert Analysis Group can help.

Contact us today to learn more about how we support financial firms through the Appointed Representative regime and ensure full FCA compliance.