FCA supervisory approach
FCA supervisory approach

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • FCA supervisory approach
  • Introduction
  • Overview of FCA supervision
  • Statutory basis for FCA supervision
  • The FCA’s supervisory principles
  • FCA supervision in practice—supervision categories and communication with firms
  • Dedicated supervision team
  • Supervision by portfolio
  • Supervision in practice—authorisation and continuing to meet threshold conditions
  • Supervision in practice—the decision-making framework
  • More...

BREXIT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note.

Introduction

This Practice Note considers the statutory basis for FCA supervision and the FCA’s supervisory approach, including the FCA’s decision-making framework. It examines the FCA’s supervisory principles, focus and priorities in addition to summarising how the FCA supervises firms in practice. This Practice Note also considers the approach of FCA supervision to the retail and wholesale markets and to international firms, in addition to the supervision of specialist areas (financial crime, fintech and outsourcing). It considers the FCA’s co-operation with other bodies, such as the PRA, and discusses the FCA’s supervisory approach to prudential regulation of firms that are not dually regulated by the PRA. The information is based, in the main, on: FCA Mission: Approach to Supervision (April 2019), the FCA Handbook’s Supervision Manual (SUP), and FCA’s Mission Paper 2017: How we regulate financial services.

Further information on the FCA and PRA generally can be found in UK regulators—financial services—overview. Information on supervision by European regulators can be found in Practice Note: European System of Financial Supervision.

Overview of FCA supervision

The FCA’s single strategic objective is to ensure

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