The FCA has published draft guidance on a new power that allows it to move faster to remove regulatory permissions that are no longer being used by financial services firms.
Responses to the consultation (CP21/28) close on 29 October 2021.
The driver behind the proposed power is the regulator’s belief that incorrect or outdated permissions on the Financial Services (FS) Register can mislead consumers about the level of protection offered by a firm or give credibility to a firm’s unregulated activities.
The new power, granted to the FCA via the Financial Services Act 2021, will streamline and shorten the process of removing firm permissions. The FCA will be able to start the cancellation process as soon as it considers permissions are not being used, by serving 14 days’ notice on a firm. The FCA will then be able to vary or cancel permissions after 1 month.
This consultation supplements the recent paper on new decision making powers that the FCA is seeking. Read our recent article here.
Consumer Duty starts to take hold
Lisa Cross Compliance
Consumer Duty rules will take full effect from 31 July 2023. However, it is starting to show its face already. This message is now appearing on Connect in some circumstances. “The majority of firm types that need to apply for authorisation or existing firms seeking to vary their permissions will need to comply with […]