Enforcement after the FSA

Speaking at the FSA's recent Enforcement conference, Martin Wheatley (CEO designate of the FCA) and other senior regulators outlined some of the differences firms can expect under the new regime.

As previously, it was made clear the current FSA strategy of 'credible deterence' will be continued and, if anything, intensified under the FCA.

Here are some of the most significant developments:

"We will be more prepared to use formal tools including enforcement actions to support the FCA’s emphasis on intervening earlier to stop problems from occurring. Members of our Enforcement Division will get involved in supervisory decisions at an earlier stage, and provide specialist support and expertise to our supervisors. We will take action earlier to tackle root causes – like poor remuneration arrangements – rather than waiting for the risks to crystallise." (To read speech in full click here.)

"We need to have a low tolerance for firms that constantly bump along the bottom. We will be much more prepared to intervene and limit business where each time we raise an issue or take action against a firm when we see it fixing only the immediate problem but failing to think about how the underlying causes – whether they be culture, product design, training or reward – might read across and cause similar problems in other areas. I expect the FCA to have a lower tolerance for repeat offenders." (To read speech in full click here.)

CTP provides a range of events to help clients keep up to date with the latest regulatory developments and prepare their businesses for the new regulatory regime.

For further information click here or call us on 020 3170 5779.