| Link(s): | We invite Politically Exposed Persons to share their experiences | FCA Letter to MPs, peers and other interested parties (fca.org.uk) |
Context
The FCA is currently reviewing how financial services firms have applied the PEPs regime and whether changes to its guidance are required. This follows feedback it has received and is in line with the requirements of the Financial Services and Markets Act 2023.
Key points to note
- The Politically Exposed Persons (PEPs) regime means that firms are required by law to undertake extra checks on political figures, their families and known close associates.
- The FCA are keen to hear directly from UK PEPs and are proactively reaching out to parliamentarians, chairs of the political parties and other UK PEPs (including senior civil servants and the senior ranks of the armed forces) at an early stage.
- The PEPs regime derives from the international standards issued by the Financial Action Taskforce. They are necessary due to the possibility that a PEP may be in a position to abuse their public office for private gain and to use the financial system to launder the proceeds of this.
- Guidance for financial services firms was published by the FCA in 2017 to help firms apply a proportionate and risk-based approach to PEPs.
The full terms of reference for the review will be published in September 2023, with a report expected by June next year, which will inform any subsequent steps.
Next actions
None – for information and awareness.