FCA reforms decision-making to tackle consumer harm

26 Nov 2021 02:10 PM

The FCA has reformed its decision-making process to ensure it can make faster and more effective decisions for consumers, markets and firms.

As part of its transformation to a more innovative and assertive regulator, more decisions will be taken by the FCA’s senior managers rather than by the Regulatory Decisions Committee (RDC). The new process will ensure decisions to prevent or stop consumer harm are taken more quickly.

More contentious cases will continue to be reviewed by the RDC, which is a committee of the FCA’s Board that operates separately from the regulator. Its members are drawn from business, consumer and financial services backgrounds.

The FCA’s senior managers are now able to take decisions on the following:

a firm’s authorisation or an individual’s approval
action in straightforward cases to cancel a firm’s permissions and that action is contested
starting civil proceedings, such as seeking an injunction
starting criminal proceedings, such as a prosecution for insider dealing
using the FCA’s powers to vary or limit a firm’s permissions
using the FCA’s powers to impose requirements on a firm

Emily Shepperd, Executive Director of Authorisations, recently said:

“We are taking a fresh approach to tackling firms and individuals who do not meet the required standards. Our new streamlined decision-making process will allow us to be more assertive in stopping harm.”

The FCA will carry out a 6-month post-implementation review to assess the effectiveness of the reforms.

Notes to Editors