Context
The FCA has sent a letter to wholesale brokers to set out its new strategy for supervision for those firms.
Key points to note
The letter details the FCA’s view of the most important risks arising from wholesale brokers, what it thinks drives those risks, and its supervisory focus for the next two years.
The key topics dealt with in the letter are:
- Financial resilience
- Remuneration structures
- Governance and culture
- Control functions
Next actions
The FCA expects all CEOs of wholesale brokers to have discussed the letter with their fellow directors and/or Board, and to have set any agreed actions and/or next steps, by the end of February 2023.