FCA supervisory approach
FCA supervisory approach

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

  • FCA supervisory approach
  • Overview
  • Statutory basis for FCA supervision
  • The FCA’s supervisory principles
  • FCA supervision in practice—supervision categories and communication with firms
  • Supervision in practice—authorisation and continuing to meet threshold conditions
  • Supervision in practice—the decision-making framework
  • Stage 1: Pre-emptive identification of harm
  • Stage 2: Diagnostic tools
  • Stage 3: Remedy objectives and tools
  • 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. For further guidance on the impact of Brexit on the Financial Conduct Authority’s (FCA’s) supervisory approach, see Practice Note: Preparing for Brexit: Regulations relating to the European Supervisory Authorities and the European Systemic Risk Board and Information Sharing—quick guide.

Overview

The FCA’s single strategic objective is to ensure that relevant markets work well. Alongside this, the FCA has three operational objectives: to protect consumers, enhance market integrity, and promote competition in the interests of consumers. In order to deliver its objectives the FCA has a range of tools and independent powers to make best use of these tools. Key to achieving its objectives are the FCA’s supervisory powers, which allow the FCA to set principles and rules and to enforce them when things go wrong. The FCA defines supervision as ‘the continuing oversight of firms and of individuals controlling firms, to reduce actual and potential harm to consumers and markets’.

The FCA is the conduct supervisor for all authorised persons under the Financial Services and Markets Act 2000 (FSMA 2000).