On 21 March 2018, the FCA published documents setting out its approach to supervision and enforcement. The publication of these documents follow the publication by the FCA of its Mission, where it committed itself to publishing a series of documents that would explain its approach to regulation in more depth.
In the approach to supervision document the FCA explains that it defines supervision as the continuing oversight of firms and of individuals controlling firms to reduce actual and potential harm to consumers and markets. The FCA then discusses its supervisory principles (chapter 2), its priorities and focus (chapter 3) and how it supervises covering the identification of harm, diagnostic tools, remedy tools and evaluation (chapter 4).
The approach to enforcement document outlines how the FCA conducts investigations and its powers. This covers how it identifies harm (chapter 2), diagnosing harm through its investigations (chapter 3), sanctions and remedies (chapter 4) and evaluating its approach to enforcement and measuring performance (chapter 5).
The deadline for comments on both documents is 21 June 2018.
The final approach documents will be published later this year.