Dear CEO letter sets out FCA’s supervisory strategy for corporate finance firms

Article summary

The Financial Conduct Authority (FCA) has written a Dear CEO letter setting out its supervisory strategy for firms supervised in its corporate finance firms (CFFs) portfolio. The overall supervisory strategy will cover the following drivers of harm: unsuitable products to consumers, market abuse, financial crime including sanctions breaches, and financial resilience. The FCA’s supervisory priorities for the sector focus on client categorisation, the Consumer Duty, incorrect or outdated regulatory permissions, and market abuse, including proper management of conflicts of interest and the risks associated with personal account dealing (PAD). The FCA expects firms to have reviewed the letter and agreed appropriate action where necessary by the end of November 2023.