ARTICLE
21 December 2018

UK Financial Conduct Authority Publishes Its Final Approach To Authorization

SS
Shearman & Sterling LLP

Contributor

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On November 28, 2018, the FCA published its final document, entitled "FCA Mission: Approach to Authorisation," explaining the purpose of authorization and the FCA's approach to it.
United Kingdom Finance and Banking

On November 28, 2018, the FCA published its final document, entitled "FCA Mission: Approach to Authorisation," explaining the purpose of authorization and the FCA's approach to it. The paper sets out details of the FCA's approach to: (i) evaluating whether firms meet the requisite Threshold Conditions and assessing whether individuals are "fit and proper;" (ii) how the FCA uses authorization to promote competition; and (iii) revoking authorization.

The final Approach to Authorisation includes a feedback statement to the consultation which ran from December 11, 2017 to March 12, 2018. The FCA notes that it has made clarifications on the following:

  1. the assessment of authorization applications for individuals with key roles in solo-regulated and dual-regulated firms;
  2. the assessment of drivers of behavior that can create culture likely to cause harm;
  3. situations where the FCA may revoke authorization, registration and approval;
  4. the role of the Regulatory Decisions Committee;
  5. the provision of support to firms to promote competition; and
  6. measurement of the FCA's operational performance and the effectiveness of its approach.

The FCA has also included an improved set of its public commitments to firms.

The "FCA Mission: Approach to Authorisation" is available at: https://www.fca.org.uk/publication/corporate/our-approach-authorisation-final-report-feedback-statement.pdf  and the FCA's Mission is available at: https://www.fca.org.uk/publications/corporate-documents/our-mission.

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