The FSA has fired a warning shot to firms failing to conduct adequate platform risk management arrangements when changing business models.
Speaking at today's The Platforum conference, the FSA's Rory Percival said amongst 12 firms selected for in-depth investigation as part of its Thematic Review - published in March - not one had put in place adequate risk management and oversight arrangements when changing business model.
"We did not have a single good practice example in our report on oversight arrangements and this is simply not acceptable," Percival told delegates.
Changing business model encompasses both wholesale changes and the offering of new services, Percival said.
He added the area is a particular area of concern, representing the industry's "gaping hole", and appealed to delegates to engage with the issue.
"There has been little discussion within the industry around platform risk management and oversight changes and our challenge is to put this subject on the agenda and discuss the appropriate solution."
In a warning shot to firms to up their game, he said: "Let's discuss this issue now - or other firms like Money Wise will go through painful enforcement processes."
Money Wise recently became the first high-profile firm to suffer enforcement action for platform-related advice failings.
Percival also said networks face different risk management challenges, pointing to the fact risks vary from one AR to another and they must try and manage such a disparate set of risks.
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