FCA UK Regulation Exam Practice 2025 – Complete Preparation Guide

Implementing adequate and regular audits is vital for a firm to fulfill FCA requirements regarding record-keeping because audits serve as a mechanism for ensuring compliance with regulatory standards. The FCA emphasizes that firms must maintain accurate and accessible records to demonstrate their adherence to rules and regulations. Regular audits help identify any discrepancies or areas for improvement in record-keeping processes, ensuring that the firm is up to date with its obligations and can provide necessary documentation when required by the FCA.

Audits also promote accountability within the organization, facilitating a culture of compliance and risk management. By evaluating the effectiveness of existing processes and internal controls, firms can make informed decisions about enhancements and necessary adjustments, thereby mitigating risks associated with inadequate record-keeping.

This approach aligns with the FCA's objective of promoting transparency and trust in financial markets, as thorough record-keeping and regular audits contribute to higher standards of accountability and integrity in financial services.