Protect your business from acquisition risk with robust and discreet regulatory due diligence from TCC.
When looking to acquire a new business regulated by the FCA, it is important that you carry out regulatory due diligence to fully understand the business’ history and quantify the potential historical risks attached to the acquisition.
Failure to undertake appropriate due diligence can have far reaching consequences. Purchasing a business with risks you are not aware of can have catastrophic consequences if they materialise. We have seen firms receive an FCA visit shortly after a purchase, resulting in costly S166s and remediation exercises. Before agreeing a purchase it is therefore important you are fully aware of all risks, actual and potential, within the target firm.
It is fair to say that most firms, and particularly those providing financial advice, will come with a level of inherent conduct risk attached. You need a certain level of industry knowledge and expertise to properly consider whether that risk is acceptable.
Regulatory due diligence not only influences the cost of the acquisition, but also evidences to the FCA that you have considered the risks of the business and its customers and have the requisite resources to effectively run the acquired business in the future.
How can we help?
At TCC, we provide cost-effective solutions assisting in completion of due diligence on target firms to the standards that would be expected by the FCA. We take a practical and proportionate approach and seek to understand the strategic drivers behind the acquisition to provide you with a tailored service.
Our standard due diligence process considers up to 14 separate modules, including:
- Client Proposition
- Governance & Controls
- Training & Competence (inc Supervision)
- Continued Professional Development
- Advice Process and Tools
- Business Mix and Profile
- Suitability of historic advice files
- Post Advice Servicing
- Complaints Handling
- Professional Indemnity
Why partner with TCC?
- Discreet – on-site activity can be managed discreetly given the other compliance services we offer.
- Knowledge – we compare the target firm against market peers utilising our sector expertise.
- Experience – we have undertaken a number of due diligence projects for Asset Managers, IFA consolidators and national advisory firms as well as for one off acquisitions.