We are reforming our decision-making process so we can make faster and more effective decisions. This will help us improve how we tackle firms and individuals who do not meet the required regulatory standards.
Why we are changing
A key part of our Transformation Programme to become a more innovative and assertive regulator is a fresh approach to tackling firms and individuals who do not meet the required standards. This involves reforming our decision-making and governance so we can respond more quickly to prevent or stop consumer harm. To do that, we are moving some decision making from our Regulatory Decisions Committee (RDC) to the FCA’s senior managers.
What is changing
The RDC will still make decisions in relation to enforcement cases where the FCA is proposing a disciplinary sanction or seeking to impose a prohibition order.
But now, FCA staff will make certain decisions, including:
- using our own-initiative intervention powers to impose a requirement on a firm, or to vary its permissions
- making a final decision about a firm’s application for authorisation or an individual’s application for approval that is contested
- where we decide to take action in straightforward cancellation cases to remove a firm’s permissions because a firm does not meet our regulatory requirements
- the decision to begin civil and/or criminal proceedings
Who this applies to
This consultation will interest:
- regulated firms
- individuals working in financial services
- consumer groups and individual consumers
- industry groups / trade bodies
- policymakers and regulatory bodies
- industry experts and commentators
The rules will come into force on 26 November 2021.
As part of our commitment to improve operational effectiveness, we recognise the importance of transparency around our processes and decisions. We will carry out a 6 month post-implementation review to assess the effectiveness of the changes, and we will include in our Annual Report similar data on Executive decisions and outcomes that is currently provided for the RDC once such data is available.