The Model Office Blog

The FCA Approach to Supervision and Enforcement

[fa icon="calendar"] Mar 23, 2018 11:54:23 AM / by Chris Davies

When the FCA launched its Mission, it committed to publishing a series of documents that would explain its approach to regulation in more depth. These articulate how the FCA carries out its main activities, aiming to provide transparency to its thought process and decision-making. 

The Approach to Supervision shows how the FCA aims to be more forward-looking and pre-emptive in its supervision of firms. Firms’ conduct strategies and cultures are at the root cause of most major failings. Supervision’s proactive engagement with firms will focus on business models and the drivers of behaviour in firms. Supervision will prioritise its activities according to the greatest risk of harm. The Approach document explains how the FCA has an intelligence-driven and data-led approach that enables it to take prompt and incisive action once harm has been identified.

This is important as our research shows that it is those firms who showcase strong conduct and constructive culture who will gain competitive advantage. This is because consumers want firms they can trust and have professional practice at their heart.

The problem has been with a principles based framework, The FCA feel they cannot be prescriptive and traditional compliance practice has been reactionary and checklist driven for too long.

At Model Office, our aim is to break this old cycle and bring a pro-active approach that focuses on how all the regulatory directives impact the business, where blind spots are and most importantly provide real-time Management Information and strategy across 5 key metrics that firms need to employ to ensure they remain compliant, client-centric and sustainable.

So with the on-going FCA theme for assessing culture and conduct, we would encourage your firm to use #RegTech to help assess where you sit, any blind spots and provide real time strategy to improve professional practice

Please click the below icon link to MO's platform and learn more about MO today..

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Topics: Financial regulation, Financial business development, Risk management, fintech, regtech, practice management, FCA, Constructive compliance, advice, HMT, suitability, FAWG, FAMR, Fitbit, MiFIDII, GDPR, Data, Chatbot, Culture, Enforcement, supervision

Chris Davies

Written by Chris Davies

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