Preparing for an FCA supervisory visit can feel daunting, but it’s also a valuable opportunity to demonstrate your firm’s strong compliance culture and commitment to meeting every regulatory requirement. For asset managers, senior managers, and others working in financial services, this is your chance to show the Financial Conduct Authority (FCA) that you meet – and exceed – the regulation expectations.
By combining a clear understanding of the FCA’s supervisory approach with proactive preparation, you can handle the process confidently, respond rapidly to requests, and avoid common pitfalls under regulatory scrutiny.
One of the most effective tools in your FCA visit preparation is the FCA Thematic Review Checklist, which highlights the regulation priority focus areas. Alongside this, assembling the right documents, preparing your team, and knowing how to engage with inspectors are essential for a smooth in-person or virtual inspection.
In this guide, we’ll cover:
- The FCA supervisory visit process
- Leveraging the FCA Thematic Review Checklist
- Gathering essential documentation for asset managers
- Avoiding common pitfalls
- Preparing your team for the inspection
- Anticipating FCA questions with a sample Q&A
- Post-visit follow-up steps
By the end, you’ll have a clear, structured action plan to ensure your firm is inspection-ready, able to respond effectively, and positioned for a positive outcome.
Understanding the FCA Supervisory Visit Process
The FCA uses supervisory visits to assess whether firms meet their regulatory obligations in governance, risk management, operational resilience, consumer duty adherence, and fair customer treatment. The visit also gives the regulator valuable insight into your firm’s culture, structure, and approach to day-to-day operations.
Typical stages include:
- Notification – The FCA sends a formal notice outlining the scope, requirements, and focus areas of the visit.
- Preparation period – Your chance to gather relevant files, brief your team, and review in-house systems and processes.
- On-site or virtual meeting – FCA representatives meet with senior managers, review documentation, and conduct interviews to assess compliance.
- Review and discussion – The FCA may raise preliminary observations and guidance during the visit.
- Post-visit reporting – A formal findings report is issued for your review and potential response, often with clear expectations for remedial actions.
A thorough approach to supervision means having an operational framework in place that is designed to help you respond quickly and effectively.
Importance of the FCA Thematic Review Checklist
The FCA Thematic Review Checklist is an essential resource for FCA supervisory visit preparation. By mapping your firm’s practices against the checklist, you ensure your programme and governance approach align with the FCA’s own evaluation standards.
Key benefits:
- Spotting and addressing compliance gaps early
- Focusing preparation on high-priority functions
- Demonstrating proactive governance and robust oversight
- Promoting sustainable operational improvements
For asset managers, this review should cover:
- Client suitability assessments and evidence that products and services meet the needs of your target market
- Conflicts of interest policies that clearly outline responsibilities
- Product governance documentation with relevant controls and design processes
- Operational resilience procedures that address potential risks
Essential Documentation for Asset Managers
Well-prepared documentation not only speeds up the meeting but also signals that your firm has a strong compliance culture embedded in its day-to-day operations. For an FCA visit, you should be ready to provide:
- Compliance manuals and policies – A current governance framework showing oversight and decision-making processes
- Risk assessments and control logs – Proof of robust operational and risk controls
- Client agreements and mandates – Evidence of suitability and regulatory alignment
- Performance reports – Clear, transparent communication to customers and clients
- Third-party due diligence – Checks to ensure outsourced services meet standards
- Staff training records – Proof of consumer duty awareness and continuous professional development
- Committee meeting minutes – Especially from compliance, audit, and oversight committees
Common Pitfalls to Avoid
Even well-prepared firms can encounter issues during an FCA supervisory visit. Common mistakes include:
- Incomplete or outdated documentation in required files
- Unprepared senior managers or staff who cannot provide clear answers
- Overly defensive communication when under regulatory scrutiny
- Failure to update processes in line with consumer duty obligations
Treat the supervisory visit as a collaborative review with the regulator rather than a defensive challenge.
Preparing Your Team for the FCA Inspection
Your staff’s readiness can directly influence the outcome of the FCA visit. Everyone, from senior leaders to operational staff, must understand their role and responsibility in the inspection.
Preparation tips:
- Hold a pre-visit seminar to explain scope, requirements, and expectations
- Offer targeted training on consumer duty, governance, and operational processes
- Provide a detailed preparation checklist for all relevant functions
- Run mock interviews to ensure responses are consistent and appropriate
- Encourage open communication so employees can clarify uncertainties before meeting the regulator
Sample Q&A: Anticipating FCA Questions
Preparing sample Q&A ensures that when the FCA asks, your staff can respond rapidly and effectively.
Potential questions might include:
- How do you assess suitability for clients and ensure your products relate to their needs?
- What steps do you take to identify and manage conflicts of interest?
- How do you monitor operational and governance risks?
- Can you outline your complaints handling process and outcomes?
- What consumer duty and regulatory training have staff received this year?
Agree on responses in advance, document them, and ensure all relevant staff can communicate them with clarity.
Post-Visit Actions and Follow-Up Steps
Once the FCA leaves, your follow-up process should be just as thorough as your preparation.
Steps to take:
- Review the FCA’s feedback in detail
- Create a documented action plan with responsibilities and timelines
- Implement remedial actions and improvements to address risks
- Provide updates to the regulator where required
