Context
The FCA has published a new page on its website which contains its expectations on remote or hybrid working so firms can plan and continue to meet their regulatory responsibilities.
Key points to note
- The expectations apply to existing FCA firms, any firms applying to become regulated by the FCA and any firms proposing to submit further applications (variation of permission, change of control etc.) to the FCA.
- The page is split into five sections:
- What existing firms should be planning for now
- How firms operate their business
- Firms’ engagement with the FCA
- Notifying the FCA of changes to firms’ working arrangement
- If a firms are applying to be authorised or registered
- In relation to existing firms the webpage explains that firms considering remote or hybrid working will be evaluated by the FCA on a case-by-case basis.
- Firms should consider how they operate their business and be able to prove that the lack of centralised location or remote working does not, or is unlikely to, cause detriment to consumers or impact its ability to meet the threshold conditions.
- Firms must also prove that there is satisfactory planning. This includes that there is a plan in place, which has been reviewed before making any temporary arrangements permanent and is reviewed periodically to identify new risks.
Next actions
We suggest firms take the time to read through the page, in particular it should be noted that firms may need to notify the FCA first if there are any material changes to how the firm intends to operate – see Principle 11 – dealing with the regulator in an open and cooperative way. The timing of publication of the new web page coincides with what has appeared to be a recent “return to the office” message from the Government. This message from the Regulator is perhaps one of “If you’re not going back to the office, you have to do it right and let us know”