Summary Report of 25 November 2025 Audit and Risk Assurance Committee Meeting

The Committee considered the following items:

Executive Update

The Director of Corporate Services gave an update on the latest work and issues within the FSA and wider government including: the Budget, the Growth Agenda, Sanitary and Phytosanitary (SPS) agreement, financial position, business planning, pay award and FSA Ready.

Governance Framework for Enforcement – update

The Deputy Director Head of Regulatory Compliance introduced the paper which gave an update on implementing the agreed action plan resulting from the Governance Framework for Enforcement review.  ARAC members welcomed the update and noted the progress made.

Non-Compliance Intervention actions

The Director of Operations presented the paper detailing the progress made in implementing the actions from the Non-Compliance Interventions review.  ARAC members were content with the progress to date.

Postmortem Inspection – update

The Director of Operations updated ARAC members in respect of the root cause analysis being completed following the Postmortem Inspection review.  A full update expected at the next ARAC meeting.

FSA Annual Reports, consolidated and devolved accounts

The Financial Controller and Assurance Manager detailed the changes made from the draft reports received in September.  ARAC members thanked the team for the work producing the reports and discussed various points.

NAO External Audit report

The NAO Director introduced their completion report which was noted by ARAC members.

Information Security Risk update

The Head of Knowledge Information Management and Security presented the paper which detailed the latest updates in respect of information security.  ARAC members welcomed the update and challenged / discussed various points.

Risk Management update

The Head of Planning, Performance and Risk introduced the paper which detailed the latest updates in respect of risk management within the FSA and the corporate risk register.  ARAC members noted the update and were content with the current position.

Assurance Map and Functional Standards

The Assurance Manager gave an update on the assurance map giving a high-level overview of the verification pilots and running through a specific example.  ARAC members were happy with the progress being made updating the assurance map.

Internal Audit progress report and planning process

The Head of Internal Audit (HIA) introduced internal audit’s quarterly progress report.  This summarised the themes coming out of internal audit reviews, progress made by the executive implementing audit management actions and delivery of the internal audit plan.  The HIA requested a change to the audit plan to assist with some work alongside the regulatory audit team.  This was agreed alongside the planning process for 2026/27.

Regulatory Audit progress report

The Head of Delivery Assurance presented the latest report detailing the progress made in delivering regulatory audit assurance activities in England, Wales and Northern Ireland.  ARAC members discussed in more detail the work to be completed alongside the internal audit team.

Programmes and Projects

The Head of Project Delivery Function detailed the key risks and steps to strengthen delivery of the programmes and projects portfolio.  ARAC members discussed the current issues within the portfolio.

ARAC Effectiveness

The Head of Internal Audit detailed the actions completed and in progress resulting from the ARAC effectiveness review.

Current Litigation

The General Counsel gave the ARAC members an overview of current litigation involving the FSA including updates received between the papers being issued and the meeting.

ARACs role in FSA Ready

ARAC members discussed the assurances they would like to receive from the FSA Ready programme.

Below the line papers received for information:

• Audit Management Actions

• Complaints

• External Assurances

Date of next meeting:

10 March 2026