FCA Audits in London
Millet Audit are a leading accountancy company, specialising in financial and statutory audits.
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Does your FCA-regulated firm need an audit?
Most FCA-regulated firms in the UK are required to submit audited financial statements each year, including investment advisors, brokers, consumer credit firms, and alternative investment fund managers. If your firm is classed as a “full-scope” firm under the FCA Handbook, or you hold client money or assets, you will almost certainly need an annual audit. Even if your firm qualifies as a “small” entity under the Companies Act, FCA rules may still require a statutory audit depending on your activities.
Speak to our team and we’ll help you determine your exact audit obligations, ensure you are fully prepared to meet them, and guide you through the process. We have experience with financial services firms across investment management, consumer credit, crowdfunding, insurance broking, and fintech, and stay up to date with FCA regulatory changes and reporting standards.
Specialist Compliance Support from Millet Audit
For businesses regulated by the Financial Conduct Authority (FCA), maintaining compliance is not optional – it’s an essential part of daily operations. FCA audits are a critical tool for demonstrating transparency, protecting clients, and meeting your firm’s regulatory obligations. At Millet Audit, we support FCA-regulated businesses across London with independent audits that are accurate, timely, and fully aligned with FCA expectations.
As a firm based in the capital, we understand the challenges that come with operating under the FCA’s watch in one of the world’s most competitive financial markets. Whether you’re an investment firm, insurance intermediary, mortgage broker, or fintech startup, your business is subject to detailed reporting requirements and ongoing scrutiny. Our team works closely with you to ensure your financial records, controls, and systems are in line with the FCA’s strict standards.
We don’t just carry out audits – we help you understand what’s required, where your risks lie, and how to ensure long-term regulatory health.
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What Is an FCA Audit?
An FCA audit is a formal review of a regulated firm’s financial statements and systems, often carried out to meet regulatory requirements or investor expectations. In many cases, FCA-regulated entities must undergo an annual statutory audit, in accordance with the Companies Act 2006 and FCA Handbook rules. These audits are particularly relevant for firms that hold client money, operate in complex financial markets, or manage large volumes of transactions.
The purpose of an FCA audit is to ensure your financial reporting is accurate, your systems are effective, and your business remains financially sound. It also assesses how your firm complies with key regulatory obligations, such as capital adequacy, client asset protection (CASS), and financial crime prevention. Depending on your permissions and structure, your audit may include a review of systems and controls related to anti-money laundering, operational risk, or conduct of business rules.
Millet Audit offers FCA audits that not only meet the legal standard but also provide valuable insight into how your firm can improve and thrive under regulation.
Contact Us TodayWho Needs an FCA Audit?
Most FCA-regulated firms in the UK are required to submit audited financial statements each year. This includes firms authorised under the Financial Services and Markets Act (FSMA), such as investment advisors, brokers, consumer credit firms, and alternative investment fund managers. If your firm is classed as a “full-scope” firm under the FCA Handbook, or you hold client money or assets, you will almost certainly need an annual audit.
Even if your firm qualifies as a “small” entity under the Companies Act, FCA rules may still require a statutory audit depending on your activities. Additionally, some firms voluntarily commission an FCA audit to satisfy stakeholders, prepare for a regulatory review, or assess their internal controls.
At Millet Audit, we help London-based firms determine their exact audit obligations and ensure they are fully prepared to meet them. We stay up to date with FCA regulatory changes and reporting standards, so our clients never fall behind on what’s expected.
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What to Expect During an FCA Audit
An FCA audit typically begins shortly after the end of your firm’s financial year. Our team will begin by reviewing your financial statements and assessing how well they reflect your firm’s financial position. We then move on to examining how your internal systems and controls function in practice — particularly those related to regulatory compliance, client asset protection, and capital adequacy.
Client money rules (CASS) are often a core focus for FCA audits. We review how your firm segregates client money, conducts reconciliations, and ensures accurate reporting. We also examine compliance with other FCA requirements, including how financial promotions are approved, whether staff training meets expectations, and whether adequate risk assessments are being conducted. The audit may also look at how your firm handles complaints, treats customers fairly, and monitors conflicts of interest.
Throughout the audit, our team maintains clear communication, explaining our findings as we go. We aim to complete the audit efficiently, with minimal disruption to your operations, while ensuring full regulatory confidence.
Why Choose Millet Audit for FCA Audits in London?
Millet Audit is an experienced and reliable partner for FCA-regulated firms throughout London. We’ve worked with financial services companies across a wide range of sectors, including investment management, consumer credit, crowdfunding, insurance broking, and fintech. Our auditors understand the demands of the FCA regime and the fast-moving nature of financial markets in the capital.
We don’t just deliver a statutory audit and disappear — we work collaboratively with your team to understand your business model, your risks, and your long-term goals. We offer clear advice, fast responses, and hands-on support throughout the audit process. Our team is familiar with the specific expectations set out in the FCA Handbook, and we stay informed about the latest developments in financial regulation and compliance.
If your firm is based in London and looking for a professional, efficient FCA audit with added value, Millet Audit is here to help. Our service is tailored, practical, and trusted by clients across the capital’s financial sector. Get in touch today.
Frequently Asked Questions
What is the purpose of an FCA audit?
An FCA audit is designed to assess whether a regulated firm’s financial statements and internal systems comply with the requirements set out by the Financial Conduct Authority (FCA). It provides an independent review of how a business manages financial risk, client money, and regulatory obligations. The audit helps demonstrate to stakeholders and regulators that your business is financially sound, operating responsibly, and adhering to key rules such as capital adequacy and the proper handling of client assets under the CASS regime. Auditors also assess the effectiveness of your systems and controls, including how you monitor compliance, prevent financial crime, and ensure fair treatment of customers. For London-based firms operating in a fast-paced financial environment, an FCA audit plays a vital role in maintaining trust and avoiding reputational damage. A thorough audit not only helps you remain compliant but also highlights areas for improvement, supporting long-term business resilience and improved operational efficiency.
Is my firm required to have an FCA audit?
Most FCA-regulated firms are legally required to undergo an annual audit, especially if they are incorporated as limited companies and exceed size thresholds under the Companies Act 2006. However, even if your firm qualifies as a small company, FCA rules may still mandate a statutory audit based on the nature of your business activities. For example, if your firm holds or controls client money or assets, operates under full-scope regulatory permissions, or is subject to specific CASS rules, you are very likely to require an audit. Additionally, many regulated firms commission voluntary audits to demonstrate good governance or meet investor expectations. If your business is based in London, you may also face heightened scrutiny due to the region’s high concentration of financial services firms. At Millet Audit, we can assess your exact position and confirm whether an audit is required or recommended, helping you stay ahead of your regulatory obligations.
What areas are covered during an FCA audit?
An FCA audit covers a wide range of financial and regulatory areas depending on your firm’s size, structure, and regulatory permissions. At its core, the audit will review your financial statements to ensure they are accurate and present a true and fair view of the business. Auditors will also test your compliance with key FCA rules, such as those covering capital adequacy, client money (CASS), and systems and controls. For firms holding client money or assets, auditors closely review how those funds are segregated, reconciled, and reported. They may also evaluate the firm’s anti-money laundering procedures, risk management framework, internal reporting systems, and how staff meet competency and conduct standards. Financial promotions, conflicts of interest, and customer complaint handling may also be assessed. In London’s complex financial market, ensuring that all these areas are properly addressed is essential. A well-executed FCA audit can help firms identify compliance gaps and mitigate regulatory risk.
What happens if my FCA audit identifies non-compliance?
If an FCA audit identifies non-compliance, the findings will be communicated to your firm in the form of an audit report. The seriousness of the issue will determine whether it needs to be reported directly to the Financial Conduct Authority. Minor breaches that have been corrected quickly may not trigger regulatory involvement but will still be documented, and your auditor may recommend steps to prevent similar issues in the future. However, if a material breach is found — particularly relating to client money, financial crime controls, or capital adequacy — this may require immediate reporting to the FCA and swift remedial action. Non-compliance can result in regulatory scrutiny, fines, or reputational damage, especially for firms operating in London’s tightly regulated financial services sector. At Millet Audit, we work closely with clients to resolve issues quickly and strengthen internal processes. Our goal is to help firms learn from findings and implement practical improvements that reduce future risk.
