reviewing auditors’ reports of client assets, the watchdog said it found “a number of serious failings” that indicated a raft of general deficiencies within the practice.
As a result it will work alongside the Auditing Practices Board for the next three months to review the current landscape. It will focus on clarifying current standards, improving firms’ governance oversight and creating more consistency in the sector.
The review comes after the FSA slapped JP Morgan with a mammoth £33.3m fine for “failing to protect client money” in June.
A policy statement is due in 2011.