Where FCA Regulation is today

Where FCA Regulation is
today. Are you there too?
Stephen Atkins
SA Compliance Management Ltd
Skilled Persons Panel
Governance, Systems & Controls and Risk
• Bank of England
• Prudential Regulatory Authority
• Financial Conduct Authority.
FCA Permission and Landing Slots for
Sector = Higher Risk Firms
April 1, 2014 = Interim Permission
January 1, 2016 – April 1, 2016 =
Application period - FULL permission only.
Other FCA Activities carried out by
• All permissions have to be requested from the
FCA, simultaneously, and at the first applicable
Landing Slot
• Pawnbroking permission applications will
move to an earlier date if the firm carries out
other activities
If a firm had not amended its CCL to remove any
unwanted permissions the FCA will =
1. Apply the Landing Slot period of the
unwanted permission if it precedes
2. Require the firm to vary its permission
3. Not allow the the firm to revise its Landing
Slot to 01.01.2016
Unauthorised Pawnbroking
• Any firms who are not listed on the FCA
Interim Register
• Contact the FCA if this is you, or you know of a
firm without permission
• ‘Buy Back’ is not regulated, but the FCA will
check it is not used as a resort for vulnerable
FCA versus OFT
• “The FCA will adopt a higher starting point for
conduct standards than many firms may realise.”
• FCA Risk Outlook
• “There is a view that people are not frightened of
the FSA. I can assure you that this is a view I am
determined to correct. People should be very
frightened of the FSA.”
• Hector Sants, FSA CEO, March 2009
FCA Interim Permission
1 Does not allow a firm to delay its compliance
arrangements and preparation until its landing
2 The 6 month period has ended which allowed
reliance on previous CCA process.
Where are you now?
Can you evidence FCA compliance?
From April 1 2014 all consumer credit firms had
to comply with the FCA’s high level standards:
The Principles - PRIN
The Systems & Controls Rules - SYSC
Status Disclosure - GEN
Financial Promotions – COBS/CONC
What should be in place today
• Compliance Plan ( written policy for
ownership, valuations, early redemptions,
• Compliance Monitoring Plan
• SYSC Plan
See FCA website for the content of these plans
And, if not started, build today
• Regulatory Business Plan
Action: SYSC wef 01.04.14
Principle 3 states =
‘a firm must take reasonable care to organise
and control its affairs responsibly and effectively,
with adequate risk-management systems’
Your responsibilities under SYSC
To produce and maintain written processes for =
• Organogram
• Controlled Functions & Job Descriptions
• Senior Management arrangements
• Regulatory Business Plan
• Compliance Plan
• System and Controls
• Internal Audit
• Financial Crime
Action TCF & Conduct Risk
Produce a written policy that evidences –
• Customers are central to your business
• Customers achieve their expected outcome and
understand what is involved
• How the firm knows what customers are thinking
• The firm’s conduct risk appetite
• The firm use of internal audit and MI
• How this information is used to control conduct risk
and what does the firm do when things go wrong
What’s next?
FCA Electronic Reporting
Compliance Support Programmes
Complaints Management Firms
FCA pre-full authorisation visits to some large
firms and random small firms
Compliance Arrangements in place.
Regulatory Business Plan progress.
TCF is active.
FCA website regularly reviewed.
Company accounts are up to date.
Technology capability reviewed.
You have read the FCA Authorisation and
Guidance Forms.
[email protected]

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