Following a successful pilot, find out how we’re expanding Early and High Growth Oversight to support more newly authorised firms.
Firms can face challenges in meeting their regulatory obligations in the first few years after authorisation.
In response, we have initiated a new approach called Early and High Growth Oversight. This provides enhanced supervision for firms as they get used to their regulatory status and supports them to understand their obligations so they can meet the standards we expect as they grow. It will also ensure that we can identify and address harm developing in newly authorised firms quicker.
The objectives of Early and High Growth Oversight are to:
What this means for firms
Over 2022 to 2023, Early and High Growth Oversight will take in up to 300 newly authorised firms. You don't need to apply to be part of Early and High Growth Oversight, we will contact you directly if you're included.
Early Oversight pilot findings
We piloted Early Oversight with 32 newly authorised firms across a range of sectors from October 2021 to March 2022. We worked with the firms to help them improve their understanding of our regulatory requirements and make changes where this was needed.
We saw a number of common themes among the newly authorised firms:
Considerations for firms seeking authorisation
Based on our discussions with firms in the pilot, the following insights may be helpful for other firms going through the authorisation process.
- Before and during the authorisation process, make sure you read all the relevant information and guidance we provide, for example our portfolio letters or guidance relevant to your sector or business.
- You should register for access to our systems early on. This will ensure you are ready to comply with and submit your regulatory reporting on time. You should also familiarise yourself with your reporting schedule once it’s available.
- Once your firm is authorised, you will be subject to our rules and principles. In Early and High Growth Oversight, we expect you to engage with us openly and transparently. We also expect you to notify us if it’s likely that you won’t be able to fulfil your regulatory obligations.