FSA Changing its Tone and Behaviour

FSA is changing its tone and behaviour and all regulated firms and Approved Persons are well advised to understand the implications of this.

NEWS UPDATE - SEPTEMBER 2009

In these extraordinary economic times there is one certainty – there will not be less regulation. FSA is changing its tone and behaviour and all regulated firms and Approved Persons are well advised to understand the implications of this.

Where we have previously had Principles Based regulation and what some commentators have incorrectly called light touch regulation there is now a sea change coming. *The FSA Chief Executive has publicly informed regulated firms - "people should be very frightened of the FSA".

Frightened of what?
The answer is greater intervention and Enforcement and consequent discipline and fines particularly against senior managers of companies. Being a rogue and a law breaker used to be the cause of problems with the Regulator but now if you run your company badly or less than competently (in the FSA’s view) or treat your customers unfairly then the FSA may want to feel your collar and worse the contents of your pocket.

There is a view all this shock and awe is directed at banks and people called Fred. Please be under no illusion the FSA is not in a mood to take prisoners; all firms, large and small, are fair game and will assist them in getting the message regarding their new intensive supervisory strategy across. There are a number of Enforcement cases in the pipeline and they concern firms of all sizes.

What should directors and senior managers who are Approved Persons do?
Make sure you understand your responsibilities to the Regulator and can evidence that you have fulfilled them.  
- Are your responsibilities clearly and accurately recorded?
- What evidence have you got of their fulfilment?
- How can you evidence your competence?  
- Can you prove TCF is embedded in your firm?
- Can you show you received appropriate management information?
- Can you show you acted upon it and followed it up?
- Have you taken account of the extension of the Common Platform on April 1st?

If any of these questions cause you to pause and think, please see the quote from the FSA’s CEO above*, and then contact IFAct for assistance.