How can an adviser ensure the adequacy of their internal controls?

An adviser can ensure the adequacy of their internal controls by routinely conducting internal audits and reviews. This process allows the adviser to systematically evaluate the effectiveness of their internal controls and compliance programs, identify weaknesses or areas of improvement, and address any issues proactively. Regular internal audits help ensure that procedures are being followed correctly, that controls remain effective over time, and that any changes in regulations or business practices are reflected in the internal control framework.

Continuous monitoring through internal audits also fosters a culture of compliance and accountability within the organization. It provides opportunities for training and awareness regarding compliance issues, ultimately strengthening the overall governance structure. By not waiting for external audits or relying solely on client feedback or legal consultations, which may not provide ongoing assurance, the adviser can maintain a robust compliance environment that is responsive to potential risks.