The Financial Conduct Authority (FCA) have this week published two documents outlining its approach to authorisation and its approach to competition.
These two documents form the second and third instalments in a series of documents from the FCA that would further explain its approach to regulation in more depth. This series of documents were outlined by the FCA when it launched its Mission back at the end of 2016. The first document in this series of approach documents was the approach to consumers which was published back in November.
Andrew Bailey, FCA Chief Executive said:
‘As part of our Mission, we committed to being more open and transparent about how we regulate and how we make decisions.
‘Authorisation is the gateway for firms that want to operate in the financial services industry. We use it to prevent harm from occurring by ensuring that all firms meet our minimum standards before they are allowed to start doing business. It’s vital that we get it right to keep out firms that are not up to scratch and allow the right ones through.
‘Effective competition in financial services benefits consumers and firms. We are one of the few financial regulators in the world with a core objective to promote competition and it applies to all the work we do.’
Both of the recent approach documents are open for consultation until 12th March 2018. After which the final approach documents will be released in due course. Take a look below to find out the type of questions each document raises.
The Approach to Authorisation document asks questions about how the FCA approaches authorisation. They are:
- whether there is a clear understanding of the Threshold Conditions that firms and individuals must meet for authorisation and, if not, where the FCA could be more specific
- whether there are any views on how the FCA supports firms and individuals to meet the minimum standards and how this could be improved
- whether the FCA has suggested the correct commitments to firms making authorisation applications and what other commitments could be made
- whether the FCA has prioritised the right strategic goals and if there are any additional goals which would add value to the FCA’s work
The Approach to Competition document asks questions about how the FCA approaches competition. They are:
- whether the FCA’s competition remit, powers and aims are clearly understood and what more could be done to explain them
- what indicators of potential harm should be considered in the FCA’s preliminary assessment of competition
- what other tools could be used when designing remedies to address a lack of competition
- whether any further clarification of the FCA’s approach to competition is needed.
Read the full documents using the links provided and access the details to provide your responses direct to the FCA. This consultation will allow firms to provide feedback on whether they believe the current approach of the FCA is being clear regarding each of these topics as well as provide any further suggestions.