Dear CEO: Our Custody and Fund Services Supervision Strategy Letter
MoreCall: 0845 139 4444
Email: hello@square4.com
Call: 0845 139 4444
Email: hello@square4.com
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.
Service Benefits
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:
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.
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