Journey to the FCA

On October 16, the FSA published a paper that sets out how the UK’s new financial conduct regulator, the Financial Conduct Authority (FCA), will operate, entitled “Journey to the FCA.”  The paper was accompanied by a summary of key points.  Amongst other things, the paper sets out:

  • how the FCA intends to use some its new powers, including those that allow it to ban products that pose unacceptable risks to consumers and misleading financial promotions;
  • that the FCA intends to consult in November 2012 on its new Business Model threshold condition, whereby firms will be required to make clear to the FCA how their business model is sustainable, and meets the needs of clients and customers;
  • the supervision model that the FCA intends to adopt;
  • that the FCA will continue the FSA’s policy of credible deterrence; and
  • how the FCA intends to use its new Policy, Risk and Research Division to identify risks in the financial markets.

The paper was accompanied by a speech by Martin Wheatley, Managing Director, FSA, and CEO Designate, FCA, entitled “Launch of the Journey to the FCA.”  The FSA invites comments on the paper by December 14.