Following on work which highlighted the shortcomings in current auditing practices involving client money the FSA has announced additional requirements which will take effect from 1st June 2011.
The move will only affect those firms holding or controlling client money/assets (including only those insurance intermediaries who hold more than £30,000 of client money, or who do not hold client money but undertake designated investment business.
In summary the new rules will require a firm's auditor to submit one of two types of report directly to the FSA and is intended to eliminate the variances that had been seen by the FSA when they conducted checks on the auditing of client money/assets.
Full details are available on the FSA website by clicking here