Service Overview

Effective Third Party Risk Management is essential to ensure anyone distributing a product on your behalf is compliant.

Assess and manage risks posed by material third party providers.

Brokers, Dealers and other Parties

UK financial services firms increasingly rely on third parties to sell their services and products. These bring multiple benefits, but with any intermediate distribution chain (e.g. brokers, dealers or other interested parties), this also poses risks to customer outcomes.

Having an effective Third Party Risk Management Oversight Framework to evaluate and continuously monitor your third parties activities is crucial in understanding the risk they pose and the impact of their activities on your business, your brand and the wider market.

An effective Third Party Risk Management and Oversight Framework can deliver more benefits than solely addressing the need for regulatory compliance.

Square 4 FCA consultancy Logo

Service Benefits

  • Helps to firms to identify, assess and manage risks posed by your third party relationships before they crystallise.
  • Provides objectivity and independence through an unbiased view of your third party’s operations and regulatory compliance.
  • Enhances the credibility and reputation of your firm’s compliance and risk management controls with regulators, customers and stakeholders.
  • Provides insights into services that are not operating or delivering the outcomes expected.
  • Offers the opportunity to improve customer engagement, trust and business performance.

From Framework Design to Ongoing Monitoring

Third-party monitoring is an essential component of the regulatory and operational landscape for all regulated firms, regardless of the sector in which they operate. By leveraging the expertise and objectivity of Square 4, firms can enhance their compliance, manage risks more effectively, and build greater trust with regulators and stakeholders.

Speak to our regulatory experts today about:

  • Designing and implementing an effective Third Party Risk Management and Oversight Framework.
  • Providing independent due diligence, audits and ongoing monitoring reviews of your third party suppliers in line with regulatory expectations and industry good practice.
  • Support with an Outsourced or Co-Sourced arrangement, using our specialists to undertake ongoing and independent reviews on your third parties.

FAQ

Q: What is third party risk?

A. The potential threats and vulnerabilities that a firm may face due to its interactions with external entities, such as suppliers, distributors, intermediaries, service providers and customers.

Q: Why is it so important?

A: Implementing effective third party risk management and oversight ensures compliance with laws and regulations while helping to prevent reputational damage from breaches or non-compliance. This is essential to the sustained growth of any business and is now more than ever under the spotlight from the FCA given recent market issues relating to third party mis-sale and poor conduct.

Get in touch today

Get in touch

News & Insights

Sign up to our Insights

    Download White Paper

      Privacy Policy