The FCA has published finalised guidance on its framework to help financial services firms ensure they have adequate financial resources and take effective steps to minimise harm to consumers and to markets. The FCA announcement of the guidance stated:
“Consumer confidence in financial services and the firms that provide them is vital, and ensuring the financial soundness of the firms and individuals we regulate is a key focus for the FCA.
This is part of our broader approach to supervision and it aims to provide more clarity to the industry on:
- the role of adequate financial resources in minimising harm
- the practices firms can adopt when assessing adequate financial resources
- how we assess the adequacy of a firm’s financial resources
Firms’ financial resilience may be under increased pressures due to coronavirus so it is important that they are taking appropriate steps to managing prudential risk and minimising potential harm to their customers. We expect firms to assess that they have adequate financial resources that are proportionate to the risk of harm and complexity of their business.”
FCA provide guidance on SMF16/17 appointments
Richard Foster Compliance FCA, ML, PI, training
Firms should have heads of compliance and money laundering reporting officers (MLROs) who are suitably competent and capable of effectively performing the roles. It is appropriate to carefully consider how individuals can demonstrate this ahead of seeking regulatory approval. The FCA have recently issued guidance which should help firms decide if an individual candidate is […]