Our Approach

Our Mission 2017 sets out the framework for the strategic decisions we take, the reasoning behind our work and the way we choose the tools to do it.

It explained how we serve the public interest by improving how financial markets function and how firms conduct their business. It also explained how we regulate to deliver good outcomes for a wide range of users of financial services – including individuals, businesses and the economy.

When we published our Mission we committed to being more open and transparent about how we regulate and why we make the decisions in the manner that we do. As part of this we committed to publish a range of documents that explain our approach to regulation in more depth.

  • Approach to Supervision - we outline our principles of supervision, highlighting the pro-active, intelligence-led and data-driven approach we take in our engagement with firms. We look at business models, culture and the things that drive behaviour within firms in order to prioritise our activities and we take prompt and incisive action once harm has been identified. 
  • Approach to Enforcement - we clarify our aim to achieve fair and just outcomes in response to misconduct and to ensure our rules and requirements are obeyed. Our overriding principle is to provide substantive justice i.e. to ensure we carry out investigations in a consistent and open-minded way to get the right outcomes. 
  • Approach to Consumers - we explore our approach to regulating for retail consumers. It sets out our initial views on what good looks like for all retail consumers, and aims to clearly explain how we will work to diagnose and remedy actual and potential harm, giving more certainty about our framework.
  • Approach to Competition - we look at how we deliver our competition objective, to promote competition in the interests of consumers and not for its own sake. We focus on keeping markets open to entry and innovation, tackling anti-competitive conduct and intervening to ensure competitive forces drive good outcomes for consumers.
  • Approach to Authorisation - we explain the purpose of, and our approach to, authorisation, the public value it delivers and changes we are making to improve our approach. We describe how we use authorisation as a tool, primarily to prevent harm from occurring, by ensuring that all regulated firms and individuals meet common sets of minimum standards.

Next steps

We are seeking views on a number of important questions to find out if we are being clear with our approaches and what else we could be doing.

Please send us your comments for our Approach to Supervision and our Approach to Enforcement by 21 June 2018.

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