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Safeguarding Audit
Financial Crime & Audit
Safeguarding Audit UK for FCA-Regulated Firms
Expert Safeguarding Audit UK Service
Protecting customer funds is a core responsibility for payment institutions and e-money firms required to safeguard relevant funds. Effective safeguarding arrangements help ensure that customer money is identified, protected, accurately reconciled and handled in accordance with applicable regulatory requirements.
Acumen Global Compliance provides safeguarding audit and review services for eligible payment institutions, e-money institutions and other firms that need to assess their safeguarding arrangements. Depending on the agreed scope, our work may cover safeguarding accounts, internal and external reconciliations, records, governance, third-party arrangements, regulatory reporting and resolution planning.
We help firms identify control weaknesses, assess relevant FCA requirements and develop practical recommendations to strengthen their safeguarding framework
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- +44 7852 806969
- +44 7852 806969
What Is a Safeguarding Audit and Why Does It Matter in the UK?
A safeguarding audit independently assesses whether a payment or e-money firm’s safeguarding arrangements meet applicable requirements. It examines how customer funds are protected, records maintained, reconciliations performed, and third-party providers managed.
The FCA’s safeguarding rules were strengthened from 7 May 2026, introducing changes to reconciliations, record-keeping, due diligence, resolution packs, reporting and independent audits.
A safeguarding audit helps firms identify weaknesses, assess compliance and prioritise improvements.
A professional FCA safeguarding audit helps firms:
- Identify safeguarding weaknesses before FCA reviews
- Assess compliance with FCA safeguarding guidance
- Strengthen governance and oversight
- Improve safeguarding documentation
- Identify regulatory and operational risks.
- Support the protection of relevant customer funds.
What's Included in Our Safeguarding Audit UK Service?
Our comprehensive safeguarding assessment covers every key area of safeguarding compliance.
Safeguarding Framework and Governance Review
- Safeguarding policies and procedures
- Board and senior management oversight
- Responsibility for safeguarding and reconciliations
- Internal escalation and issue management
- Monitoring safeguarding balances and discrepancies
- Regular review of safeguarding arrangements
Safeguarding Reconciliations and Records
- Internal and external safeguarding reconciliations
- Reconciliation accuracy and frequency
- Discrepancy investigation and resolution
- Records and documentation
- Review and approval processes
Accounts and Customer Funds Protection
- Account arrangements
- Separation of customer funds, where applicable
- Calculation of funds to be safeguarded
- Identification of incoming relevant funds
- Insurance or guarantee arrangements, where applicable
Third-Party Arrangements
- Third-party due diligence
- Safeguarding agreements and documentation
- Ongoing provider monitoring
- Roles and responsibilities
- Contingency planning
Regulatory Reporting
- Applicable monthly reports
- Accuracy of regulatory information
- Supporting records and reconciliations
- Internal review and approval
- Reporting deadlines and regulatory notifications
Audit and Independent Assurance
- Assessment of applicable safeguarding requirements
- Review of systems and controls
- Independent audit and reporting requirements
- Documentation of audit findings
- Remedial actions and follow-up
Why Choose Acumen Global Compliance?
17+ Years of Regulatory Experience
Our consultants have extensive experience supporting FCA-regulated firms across the UK financial services sector.
FCA & Financial Crime Specialists
We specialise in:
- FCA Compliance
- Governance Reviews
- Internal Audits
- AML Compliance
- Risk Management
- Regulatory Remediation
Industry Expertise
We regularly support:
- E-Money Institutions (EMIs)
- Authorised Payment Institutions (APIs)
- Small Payment Institutions (SPIs)
- FinTech Startups
- Remittance Providers
- Crypto Businesses
- Financial Service Firms
Practical, Commercial Advice
Unlike generic audit providers, our recommendations are designed to be practical, scalable, and commercially realistic.
Trusted by Growing Firms
Our leadership team has helped support over 250 regulatory projects across multiple regulated sectors.
Service Areas We Cover Across the UK
Although headquartered in London, we provide Safeguarding Audit UK services nationwide.
Areas We Frequently Serve
We also support international firms entering the UK market and seeking FCA compliance guidance.
Safeguarding Audit Process
Step 1 – Initial Scoping
We understand your business model, safeguarding arrangements, customer fund flows, and regulatory obligations.
Step 2 – Documentation Review
We review safeguarding policies, risk assessments, governance frameworks, reconciliations, and compliance records.
Step 3 – Controls Testing & Assessment
Our consultants assess safeguarding controls, safeguarding accounts, and segregation of funds arrangements.
Step 4 – Findings Report
You receive a detailed audit report highlighting compliance gaps, control weaknesses, and risk-rated findings.
Step 5 – Remediation Support
Where required, we help strengthen safeguarding controls, improve compliance frameworks, and address FCA expectations.
FAQs
Frequently Asked Questions
How much does a safeguarding audit cost in the UK?
The cost depends on the firm’s regulatory status, business model, safeguarding method, volume and complexity of relevant funds, documentation quality and scope of the engagement. Contact us to discuss your requirements and request a tailored quotation.
How often should safeguarding audits be conducted?
The frequency and reporting timetable depend on the applicable FCA requirements and the firm’s circumstances. Firms subject to the relevant safeguarding audit rules should follow the applicable audit-period and submission requirements under SUP 3A. A firm should not assume that a general annual review automatically satisfies its formal audit obligations.
What documents are reviewed during a safeguarding audit?
Depending on the scope, documents may include safeguarding policies, safeguarding account agreements, internal and external reconciliation records, calculations of relevant funds, regulatory returns, third-party due diligence records, resolution-pack documentation and evidence of management oversight.
What are common safeguarding weaknesses?
Potential weaknesses include inaccurate safeguarding calculations, incomplete records, unresolved reconciliation differences, inadequate oversight of third parties, gaps in reporting processes and insufficiently maintained resolution information. The actual findings depend on the firm’s arrangements and the evidence reviewed.
What changed under the UK safeguarding rules in 2026?
The FCA’s strengthened safeguarding regime took effect on 7 May 2026. The changes include requirements relating to reconciliations, records, third-party due diligence, resolution packs, reporting and safeguarding audits. The specific obligations depend on the firm and the rules that apply to it.
What is the difference between a safeguarding audit and a safeguarding readiness review?
A formal safeguarding audit is subject to the relevant FCA rules concerning the external auditor and the safeguarding report. A readiness review is a consultancy assessment intended to identify potential gaps before a formal audit or regulatory review. A readiness review does not replace a formal audit where one is required.
Book Your Safeguarding Audit UK Today
If your organisation is regulated by the FCA and holds customer funds, now is the time to review your safeguarding arrangements.
Acumen Global Compliance Ltd provides expert safeguarding audit, safeguarding review, and FCA safeguarding audit services tailored to your firm’s risk profile and regulatory obligations.
Speak with our compliance specialists and receive a tailored safeguarding review proposal for your business.
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