Safeguarding Audits
Efficiency and accuracy for payment services and e-money firms.
Our CASS team provides reasonable and limited assurance audits for payments and e-money firms that require accurate and timely safeguarding audits. We'll review your firm's internal policies, procedures, records, and processes to assess whether relevant funds are being appropriately safeguarded, providing assurance that your arrangements meet regulatory expectations.
Safeguarding requirements
The Payment Services Regulations 2017 (PSRs) and Electronic Money Regulations 2011 (EMRs) require that all payments and e-money firms must safeguard relevant funds, as soon as they are responsible for them.
Firms holding relevant funds must maintain organisational arrangements to minimise the risk of loss or diminution of these funds, including adequate internal controls, risk management processes, and accounting procedures. In line with its statutory objective to protect customers, the Financial Conduct Authority (FCA) currently expects these firms to undergo an annual audit of compliance with the safeguarding requirements.
What the auditor opines on
The auditor opines on:
Whether the institution has maintained systems during the year sufficient to meet the applicable safeguarding requirements
Whether the firm complied with those requirements at the end of the audit period
You will likely be aware that the FCA consulted on the safeguarding regime and recently submitted their policy statement on the new safeguarding rules. Our service will evolve in line with policy updates as they are issued, ensuring you can trust that we will always help you to fulfil your audit obligations.
Why work with us?
Audit expertise
As a qualified auditor, we are ideally positioned to support your payments or e-money firm in meeting the latest safeguarding requirements. Our audit services are underpinned by extensive experience working with financial services firms across the sector.
Relationship led approach
Our team dedicates time to learn all there is to know about your business, allowing us to tailor all our services to meet your individual needs.
Regulatory knowledge
With payments and e-money firms facing ongoing regulatory scrutiny and frequent policy updates, we stay ahead of the curve, closely tracking changes and maintaining a clear understanding of FCA expectations. This ensures your audits consistently meet the required standards.
Cross sector expertise
Your goals shape our approach. With experience auditing firms across a wide range of sectors, our team brings deep insight and shared expertise to deliver focused, high-quality support that drives your business forward.
FAQs
What did the FCA consult on?
The FCA recently consulted (in CP24/20) on the safeguarding regime as a whole, including audit arrangements. A proposal put forward by the FCA was ultimately to bring safeguarding requirements into the CASS rules, as CASS 15. Please click the following link for our summary of the consultation.
What are my safeguarding audit obligations under the new regime?
Please click the following link to see a table summarising the key changes to the safeguarding regime as announced in the long-awaited policy statement PS25/12. On this page we highlight the key impacts that the policy changes will have on the safeguarding audit regime for payments firms.
Are safeguarding audits and CASS audits similar, and will this benefit me?
Yes. The fundamental principle to protect client funds is the basis of each set of requirements. The procedures followed in each type of audit are designed to check whether a firm is following this fundamental principle. Bringing the safeguarding requirements into a CASS chapter will enable auditors to streamline their approach and to more efficiently leverage expertise gained on other CASS audit engagements.