Internal audit teams are being asked to provide assurance that regulated staff are properly certified. Charlotte Henry explains what’s expected
The new Certification Regime (CR) represents a significant shift in responsibilities from UK regulators to financial services firms, and auditors are at the frontline in ensuring a smooth transition. While senior managers will continue to be pre-approved by regulators, firms will be responsible for ensuring that a much wider pool of people, outside the scope of the Senior Managers Regime, are certified as “fit and proper”.
The CR has therefore added significantly to auditors’ responsibilities for providing independent assurance to the board. They must consider how to ensure the certification population has been identified correctly, how to test the certification process, and how to examine documentation and report their results to the board.