FCA gives its managers greater powers
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The Financial Conduct Authority has reformed its decision-making process, giving senior managers more powers to authorise or impose restrictions on market participants.
More decisions will now be taken by the FCA’s senior managers rather than by the Regulatory Decisions Committee, with the aim of faster and more effective decision-making.
The watchdog said the overhaul, which follows a consultation in July this year, forms part of its transformation to a more "innovative and assertive" regulator and will allow decisions to be taken more quickly.
The watchdog said the overhaul, which follows a consultation in July this year, forms part of its transformation to a more "innovative and assertive" regulator and will allow decisions to be taken more quickly.
The FCA’s senior managers now have the power to decide on:
- 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, 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."
More contentious cases will still 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 new process will be reviewed after six months, the FCA said.
