We regulate over 56,000 firms. Our supervision model is built upon three pillars of supervision activity:
Pillar I is a programme of proactive, firm-specific supervision for the largest firms and groups.
All authorised firms have been allocated to one of two conduct categories:
Fixed portfolio firms are the largest firms and groups across both retail and wholesale markets. These firms have an ongoing proactive relationship with a dedicated team of supervisors at the FCA and are subject to an ongoing cycle of proactive supervision.
Read more about our Approach to Supervision for fixed portfolio firms.
Flexible portfolio firms are supervised through thematic and market-based work, along with programmes of communication, engagement and education activity aligned to the key risks identified in the relevant sector.
Read more about our Approach to Supervision for flexible portfolio firms.
While the Prudential Regulation Authority has prudential responsibility for all deposit takers, insurers and significant investment firms, the FCA is the prudential supervisor for most firms across the financial services industry, such as asset managers, financial advisers, and mortgage and insurance brokers.
Our approach aims to minimise the harm to consumers, wholesale market participants and market stability when firms experience financial stress or fail in a disorderly manner. Our starting principle is that, if firms are failing, they should be allowed to do so in an orderly manner, regardless of their size.
We allocate firms that are solely regulated by the FCA to one of three prudential categories:
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