Find out what we mean by enhanced supervision and why we use it.
Following recommendations from the Parliamentary Commission on Banking Standards, we introduced enhanced supervision. It ensures that senior management of regulated firms tackle the most serious risks to our objectives in a focused and timely way.
When a firm is under enhanced supervision, we:
- review our supervisory strategy
- require formal commitments, where appropriate, from the firm’s Board to tackle the underlying issues
- consider using other tools and powers, including imposing requirements under s55L of FSMA (OIREQ).
Once a firm has an action plan (with milestones), we will monitor the firm closely. To ensure continued regulatory scrutiny and challenge, our supervisors update our Executive Committees when these firms reach or miss their milestones.
We remove a firm from this programme when it has effectively mitigated the key risks that led us to place it under enhanced supervision.
If it is possible and appropriate, we will inform firms that we have placed them under enhanced supervision. However, the decision whether or not to notify a firm is at our discretion.