The FCA has published the June 2014 edition of its regulation round-up for smaller firms. This edition focuses on enforcement and includes the following points:
- the FCA expects all firms to consider the lessons from enforcement cases. This means a firm should consider not only the specific facts, but also look at the root cause of the failures and assess whether similar problems could arise in its business;
- the FCA has been focused on improving standards across the industry, in particular, in the areas of culture and governance. The edition includes a “hot topic” section outlining indicators of poor culture and governance where firms can expect the FCA to take enforcement action;
- FCA enforcement action cuts across all sectors and types of misconduct. There are regulatory lessons for a firm to learn from all FCA enforcement action, whether or not that action has been taken in the firm’s sector; and
- in line with the FCA’s enforcement programme all C4 firms can expect to receive a four-yearly assessment, which will be a face-to-face interview, telephone interview or online or paper-based assessment.
View FCA Regulation round-up, 19 June 2014