The FCA has today published a statement on how we will address serious failings of standards in firms. The statement outlines a new approach called ‘Enhanced Supervision’. The statement applies to all firms and should be read in conjunction with the FCA’s supervisory approach documents.
Enhanced Supervision is a formalisation of how we supervise in practice. Our supervisory approach is focussed on the root causes of failings in firms. Where a serious failure of standards poses a risk to our objectives, and our normal approach may not enable us to tackle these issues in a timely way, the firm will be made formally subject to Enhanced Supervision. We expect this to occur only in exceptional cases. Key features of the approach will be:
The statement also explains how the recommendations of the Parliamentary Commission on Banking Standards in respect of ‘Special Measures’ are achieved through the FCA’s supervisory approach.
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