Shearman & Sterling LLP | FinReg | UK Financial Conduct Authority Elaborates on its Mission and Consults on Approaches to Competition and Authorization
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  • UK Financial Conduct Authority Elaborates on its Mission and Consults on Approaches to Competition and Authorization
    The UK Financial Conduct Authority has published two consultations, seeking feedback on draft documents setting out its regulatory approach to authorization and competition. The two documents, once finalized, will form part of a series of formal approach documents explaining the FCA's approach to regulation in more depth. They should be read alongside the FCA's Mission document, which was first published in October 2016 and most recently updated in November 2017.

    In the consultation on its approach to authorization, the FCA explains the public value and purpose of requiring authorization to conduct regulated financial services activities and the FCA's current approach to authorizing firms and individuals. The FCA seeks feedback on four questions: (i) understanding of the Threshold Conditions that firms and individuals must meet for authorization, and any areas where the FCA might be more specific; (ii) how the FCA might improve its approach to supporting firms and individuals to meet the minimum standards and how the FCA might better promote competition; (iii) whether the FCA has suggested the correct commitments to firms making authorization applications and what other commitments could be made; and (iv) whether the FCA has prioritized the right strategic goals, and, if not, what additional goals could add the most public value to the FCA's work.

    In the consultation on its approach to competition, the FCA explains its role and the ways it meets its statutory competition objective. The FCA seeks feedback on: (i) whether its competition remit, powers and aims are clearly understood and what more could be done to explain them; (ii) what indicators of potential harm should be considered in the FCA’s preliminary assessment of competition; (iii) what other tools could be used when designing remedies to address a lack of competition; and (iv) whether any further clarification of the FCA’s approach to competition is needed.

    Both consultations close on March 12, 2018. The final approach documents will be published later in 2018.

    View the FCA Approach to Authorization.

    View the FCA Approach to Competition.

    View the FCA Mission.