Non-bank payments firms – the evolving role of internal audit

The recent 'Dear CEO' letter outlining priorities for payments firms (March 2023) makes it clear that the FCA expects businesses to perform an assessment of how the key risks they highlight are being managed and whether appropriate controls exist to support ongoing risk mitigation. The FCA also expects firms to regularly review whether their governance arrangements remain appropriate, such as the Three Lines of Defence governance model. We believe that internal audit has a key role to play in providing independent assurance around the effectiveness of key controls and to support the business in giving confidence to the FCA that an appropriate governance and control framework is in place.

Read our latest thinking on the evolving role of internal audit and how they can support sustainable growth within the non-bank payments sector. Our point of view also highlights typical challenges for internal audit functions in the non-bank payments sector, what we believe internal audit functions should consider to elevate their impact and depth and breadth, along with the key areas that internal audit could focus on in their risk-based plans.

If you would like to hear more about our internal audit capabilities or discuss any of the points highlighted above, please reach out to a member of the team below.