SYSC 9 Record-keeping — Compliance Review Questions

he Financial Conduct Authority (FCA) emphasizes the importance of robust record-keeping practices in SYSC 9 of its Systems and Controls section. Effective record-keeping is crucial for ensuring that firms can demonstrate compliance with regulatory requirements, support operational integrity, and provide evidence of fair treatment of customers. Here are 30 compliance questions designed to assess adherence to FCA SYSC 9 and related record-keeping requirements:

Policy and Strategy

1. Does the firm have a formal record-keeping policy that aligns with FCA requirements?
2. How does the record-keeping policy address the identification, storage, retrieval, and disposal of records?
3. Are there specific procedures for record-keeping related to different areas of the business (e.g., trading, advice given, complaints)?

Record-Keeping Practices

1. What types of records are maintained, and how are they categorized?
2. How does the firm ensure the accuracy and completeness of its records?
3. What measures are in place to protect the confidentiality and integrity of records?
4. How does the firm manage electronic records and ensure their security?

Retention Periods

1. What are the retention periods for different types of records, and how do they comply with FCA requirements?
2. How does the firm monitor and manage the lifecycle of records, including timely disposal?
3. Are there procedures for extending retention periods when necessary (e.g., in the event of an investigation)?

Access and Retrieval

1. How does the firm ensure that records are easily accessible to authorized personnel?
2. What systems are in place for the efficient retrieval of records, especially during audits or regulatory inspections?
3. Are there controls to prevent unauthorized access to records?

Compliance and Monitoring

1. How does the firm monitor compliance with its record-keeping policy?
2. What role does the compliance function play in overseeing record-keeping practices?
3. How are employees trained on the importance of record-keeping and their specific responsibilities?

Audit and Review

1. Is there a regular audit or review of record-keeping practices and systems?
2. How are findings from audits or reviews addressed and resolved?
3. What mechanisms are in place for continuous improvement of record-keeping practices?

Outsourcing and Third-party Management

1. If record-keeping functions are outsourced, how does the firm ensure the third party complies with FCA requirements and the firm’s policies?
2. What measures are taken to protect records when third-party service providers are involved?

Legal and Regulatory Compliance

1. How does the firm ensure its record-keeping practices comply with data protection laws and regulations?
2. Are there procedures for responding to legal or regulatory requests for records?

Risk Management

1. How does the firm assess risks associated with record-keeping practices?
2. What contingency plans are in place for record-keeping systems in the event of a system failure or data loss?

Client Data and Confidentiality

1. How are client confidentiality and data protection principles upheld in record-keeping practices?
2. What processes are in place for clients to request access to their records, where applicable?

Technology and Systems

1. How are technology systems used for record-keeping evaluated and selected?
2. What cybersecurity measures are in place to protect electronic records?
3. How does the firm manage changes or upgrades to record-keeping systems to ensure continuity and compliance?

By addressing these questions, compliance officers can ensure that their firm’s record-keeping practices are robust, compliant with FCA SYSC 9, and capable of supporting the firm’s overall compliance and operational goals. Effective record-keeping is foundational to demonstrating accountability and transparency in financial services operations.

Disclaimer: The information provided herein is solely for informational purposes and represents my own personal views. It should not be construed as legal or regulatory advice. For advice specific to your circumstances, please consult a qualified professional. Additionally, the opinions expressed are my own and do not reflect the views of my employer.