Support for on-site inspections

Regulatory framework

When dealing with a complex and constantly changing regulatory environment, one of your main challenges is to adhere to new regulatory requirements applicable to your activities. Failing to do so, results in ever greater reputational and business risk as well as, potentially, to financial fines. As such, Banks and PFS increasingly face the scrutiny of on-site inspections - may it be through internal or external audits, the group or the national competent authority. PwC can help you in gaining assurance in dealing with such inspections. Thanks to our expertise and knowledge of the banking and PFS industries, we can give you an overview of the most important regulatory topics. Making you aware of these matters, setting priorities and supporting you with what needs to be done will help you remain compliant and ready for on-site inspections.  

Regulatory matters

Corporate governance

  • General organisation of governance
  • Organisation and process of the internal control functions
  • Group supervision of branches/subsidiaries, performed by the Luxembourg entity
  • Remuneration policy
  • Outsourcing activities, including Business, IT and Cloud computing

MiFID II - 360° assessment

  • Investor protection, from the information provided, the client profile, the transaction cycle to the client reporting
  • MiFIR including for example Systematic internaliser threshold calculation, the associated pre- and post-trade transparency or the transaction reporting requirements
  • Advisory services
  • Knowledge and competence requirements for client-facing employees
  • Role of the compliance and internal audit function as well as other organisational requirements
  • MiFID II controls

AML/CFT

  • Internal AML/CFT risk assessment
  • Risk-based approach for your client-acceptance process
  • Ongoing monitoring of client identification
  • Ongoing monitoring of client transactions
  • Due-diligence process for distribution networks
  • Role of the compliance and internal audit functions
  • Staff training

Depositary function

  • General organisation of the depositary function (including conflicts of interest)
  • Ongoing monitoring/oversight of the activity
  • Delegated activities and the supervision/monitoring duties
  • The new client-acceptance process
  • The different processes of your activity, depending on the asset type
  • IT systems

IT regulatory and outsourcing services

Our assistance in the following aspects:

  • IT governance framework (i.e. IT strategy);

  • IT risks management framework (i.e. risk assessment, risk appetite and tolerance);

  • IT outsourcing management and oversight (including cloud computing)

  • Outsourcing service provider management (i.e. SLA, register, Service KPIs);

  • Information security management system (i.e. information security policy, testing);

  • Business continuity and crisis management measures, process and documentation (i.e. Business impact analysis and risk analysis, BC&DR plans;

How we can help: our deep dive approach

Be prepared

PwC will help you prepare for any up-coming on-site inspection.

  • On site inspection awareness session
  • Support with collecting documents requested by the supervisory body
  • Personalised coaching
  • Regulatory impact assessment

Be assessed

Prior to any inspection, PwC will help you assess your compliance and proactively identify any potential shortcomings in your framework.

  • Documentation analysis
  • Interviews with stakeholders
  • Design of an internal process analysis
  • Gap identification

Be compliant

Additional to the assessment, PwC will support in defining and designing solutions in order to treat any identified shortcomings.

  • Operational effectiveness of your internal process analysis
  • Detailed gap analysis and recommendations
  • Sample testing
  • Remediation plan

What we offer

Awareness

We will provide you with advice so that you are suitably prepared for such an exercise. Based on our experience and interaction with the supervisory body, we will apply a risk-based approach for key issues.

Expertise

Our support will be provided by regulatory experts who are able to consider business and operational impacts when assessing the regulatory challenges of your activities, your organisation and your processes.

Multicompetence

We will be able to support you in a variety of ways, whether it be analysing your documents, identifying a gap or implementing a remediation plan.

Contact us

Cécile Liégeois

Regulatory & Compliance Advisory Services - Banking - Partner, PwC Luxembourg

Tel: +352 49 48 48 2245

Isabelle Melcion-Richard

Regulatory & Compliance Advisory Services - Banking - Managing Director, PwC Luxembourg

Tel: +352 49 48 48 2469

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