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Protect your business from future risk with discreet and robust, yet pragmatic, regulatory due diligence from TCC.

When seeking to acquire a regulated business, it’s vitally important to conduct appropriate regulatory due diligence to fully understand the business’ history and identify the conduct, operational and reputational risks and issues related to the acquisition.

Purchasing a business with risks you are not aware of can have far reaching consequences if detriment has occurred in the past. We have seen firms receive an FCA visit shortly after a purchase, resulting in a costly S166 and remediation exercise. Before agreeing a purchase, it is important you are fully aware of all material risks and issues within the target firm.

Regulatory due diligence not only influences the cost of an acquisition, but also evidences to the FCA that you have considered the risks inherent within the business, its customer base and have the necessary resources to run the acquired business effectively in the future.

How can we help?

At TCC, we provide a range of cost-effective due diligence solutions conducted to the high standards 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 aligned to your risk appetite and specific concerns and can accurately assess the materiality of the risk.

We can undertake anything from an initial triage/red flag type review to a detailed systems and controls review; and everything in between. Crucially, through our reporting we can delineate between those findings that could impact the acquisition decision itself with those that aren’t business critical, but are necessary to deliver business and regulatory improvements in the future.

To ensure our approach to due diligence is tailored to your specific needs, we use a range of modules. Within each module we can dial up or dial down the level of scrutiny to take into account your risk appetite or any assurance activity already undertaken.

Our due diligence process considers a wide range of separate modules, tailored to your specific needs, but typically include:

  • Business Model
  • Corporate Governance
  • Business Strategy
  • Culture
  • Business mix and profile
  • Regulatory Interactions
  • Outsourcing
  • Customer Acquisition
  • Controls Environment Advice Proposition, product and/or service governance
  • Training & Competence (inc. supervision)
  • Continued Professional Development
  • Advice process and tools (if applicable)
  • Customer outcomes review
  • Complaints handling
  • Data Protection and Information Security
  • Status and quality of the firm’s professional indemnity.

This is not an exhaustive list and we have developed bespoke modules for many of our clients, depending on the target firm’s specific activities or the acquiring firm’s risk profile.

As well as formally considering the agreed modules, we will form a view and provide an opinion on the culture of the firm and the degree to which the tone from the top is appropriately embedded. This opinion is compiled from interactions we have with the firm and other cultural indications uncovered during the regulatory due diligence activity.

Once appropriate due diligence has been conducted, our experts can support the acquiring firm’s transitional plans to integrate the businesses, including managing Change in Controller notifications, to ensure a smooth transition.

Our approach is informed by our in-depth experience of conducting regulatory due diligence as independent consultants and our experts’ background working both in industry and for the regulator.

Why partner with TCC?

  • Knowledge: Our experts have extensive sector expertise, gained from their time in industry or at the regulator, enabling us to compare the target firm against market peers
  • Experience: We are the chosen due diligence provider for a number of significant financial services firms and have undertaken a number of projects for Asset Managers, IFA consolidators and national advisory firms, as well as one-off acquisitions
  • Discreet: on-site activity can be managed discreetly given the other compliance services we offer.

How can we help?

Don’t gamble with the future of your business. Take the time to understand what conduct risks and issues you are potentially exposing yourself to with any acquisition, in order to make an informed decision. Discuss your requirements with our Advisory team today.

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