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SREP: Supervisory Review & Evaluation Process

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The Regulator’s Supervisory Review and Evaluation Process of a firm’s ICAAP is also referred to as a SREP.

In performing the Supervisory Review and Evaluation Process (SREP), the regulator is tasked with undertaking a thorough assessment of a firm’s management capability and controls, as well as risk management exposures.

December 2016

ICAAP: Supervisory Review and Evaluation Process (SREP)

2016 has seen the FCA issue requests to more firms than ever before in relation to their ICAAP documents. This includes requests to review the policies, procedures and other supporting material to a firm’s ICAAP.

Since it is likely this trend will continue, (and in fact the FCA recently issued a Dear CEO letter to IFPRU firms in relation to what to expect from their SREP), firms should anticipate a request from the regulator and ensure they are fully prepared.

It should be noted that if weaknesses are found within a firm’s ICAAP, then it is likely the FCA will look to closely scrutinise the governance and culture within the firm, along with an increased likelihood of a higher additional capital requirement being imposed.

In fact at last year’s FCA Prudential Supervision Forum, the FCA stressed they had found that “firms are not assessing their ICAAPs appropriately” resulting in the FCA “requiring significant capital increases”.

ICAAP Support Services

If your firm should require ICAAP support services such as assistance in examining your ICAAP to ensure it is appropriately assessed for your current business plan and activities or assistance in documenting this review, our experienced ICAAP Support Consultants can help. Simply drop us an enquiry and we will be pleased to revert to you as soon as possible.

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ICAAP Support Services

If your firm would like information on our ICAAP support services such as assistance in examining your ICAAP to ensure it is appropriately assessed for your current business plan and activities or assistance in documenting this review, please contact us. Our experienced ICAAP Consultants would be happy to help, so send an enquiry or telephone today.

Telephone: 020 3813 2890