View more on these topics

FSA sets out how FCA will supervise small firms

FSA Front 480

The FSA says the incoming Financial Conduct Authority will have “touch point” contact with all adviser firms at least once every four years with firms viewed as higher-risk facing face-to-face interviews.

In its Journey to the FCA document, published today, the regulator says it intends the FCA to have contact through roadshows, interviews, telephone calls, online assessments or a combination of those options.

The nature of the interaction with firms will depend on the level of risk that firm is seen to pose by the regulator. Firms deemed to be high-risk and around 25 per cent of firms deemed medium-high risk will have a face-to-face interview and supervisory visit if they are still deemed high-risk after follow-up work.

The FCA will use risk-profiling tools based on online reports submitted to filing system Gabriel and information recorded by the FCA during firm visits to determine risk levels.

FCA Categories 480

The document sets out that intermediary firms will be classed in supervision category C4 which means they will be supervised by a team of sector specialists rather than a nominated supervisor.

The document says: “We intend having a ‘touch point’ with all C4 firms once every four years. The exact interaction will depend on our assessment of the risk such firms pose to our objectives. Those deemed to be lower risk may only be required to complete a formal online assessment once every four years. We will carry out visits to some of these firms to verify the results of this assessment.”

FCA approach 480


News and expert analysis straight to your inbox

Sign up


There are 8 comments at the moment, we would love to hear your opinion too.

  1. Now we have gone through this stupid exam process and all level 4 or above qualified, and also brought our business’s up to RDR standards, I expect the people who judge me or “supervise” me have at least the same level of qualification and competance.

    I very much doubt it ?

  2. If they would just allow us to simply do the job instead of wasting all this time and money on garrotting a once proud industry.
    Politicians on all sides should hold their heads in shame.

  3. “Stupid” exams DH? Stupid? I think you should expect a visit with that attitude.

  4. Having read a lot lately and seeing admissions from the likes of Lord Turner about how they got it all wrong in allowing the banking sector to implode can I respectfully suggest the new supervision starts at the top and cascades down.
    Anyone not found to be fit for purpose in either the past or in the immediate future should be terminated immediately. As if that’s going to happen?

  5. Given the ultimate number of small firms remaining expect a visit every four weeks not four years

  6. Can anyone explain why the disgraced useless FSA is making up the rules for the FCA.
    Silly me, I thought it might be a fresh start but clearly it will be just a change of name and the same idiots will sit in the same ivory towers,.

  7. My thoughts exactly Colin. Can you imagine Virgin Trains saying this is how First will be running the trains when we finish?

    Just proves that the FCA is just the FSA re-badged!!

  8. I agree the exam process is stupid. A year after you’ve sat the exams the subject matter is out of date.

    The FCA should have a program of continued professional development funded by the ridiculous level of fees that we already pay. This would keep each firm up to speed with regulatory and industry changes so that we know we are keeping ourselves on the right track.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm