On 19 December 2023, the FCA published a new webpage, Expectations of firms selling client banks.
On the webpage the FCA explains that a client bank is the name for a list of clients or accounts maintained by someone who provides financial services. It may include all clients the firms has worked with in the past and may include a right to income streams. The FCA states that the client bank is the firm’s asset and that it will act where these lists are being sold with redress liabilities.
On the webpage the FCA summarises:
- Existing FCA guidance and portfolio strategy.
- FCA approach. This includes that the FCA expects a firm intending to sell its client bank to notify it via a SUP 15 notification where the sale could affect the firm’s risk profile, value or resources.
- Behaviours that could lead to regulatory action being taken.