A Compliance Monitoring Plan (CMP) is one of the most practical tools a firm can have. It’s how you test whether your policies are working, and how you demonstrate to regulators that your control framework isn’t just theoretical.
The FCA expects firms to maintain proportionate systems and controls under SYSC 6, and that includes monitoring. A CMP doesn’t have to be complex or resource-heavy. What matters is that it’s structured, risk-based, and actually used.
A simple approach starts with three steps:
- Identify key risk areas – e.g., client onboarding, financial promotions, AML controls, record-keeping.
- Set monitoring frequency – focus on higher-risk areas more often.
- Record findings and actions – document what was tested, what was found, and how issues were addressed.
A good CMP evolves with your business. It should link back to your risk assessment and help drive meaningful improvement, not just create paperwork.
You can download a simple Compliance Monitoring Plan (CMP) template in our Resources section.
