| Link(s): | Our perimeter report | FCA |
Context
The FCA has published an updated version of its Perimeter Report. The FCA’s ‘perimeter’ is the line between what it does and does not regulate. The report describes specific issues the FCA sees around its perimeter and action it is taking in response. Many of the issues from the previous Perimeter Report remain, with a good number showing no significant update.
Key points to note and next actions
There is new or updated commentary in relation to:
- The Designated Activities Regime (new)
- Additions to the list of other UK and onshored EU legislation which defines the FCA’s perimeter
- Perhaps predictably, a section on International competitiveness and growth, with additional references to this secondary objective in the publication
- Additional commentary on the identification and handling of fraud or concerns at the Gateway
- Updated commentary on the debt advice landscape, in particular the conflicts of interests issues identified at debt packager firms.
- Outsourcing / third party service providers, particularly in relation to the regulation of Critical Third Parties
- Non-admitted / overseas insurers outside of the FCA’s perimeter, stating specifically that ultimately “… it is for a UK court to decide what may amount to doing insurance business in the UK, and each case would need to be assessed on its own particular facts. However, we are keeping under review the need for guidance to set out our approach in this area and we have raised the issue on an individual basis with specific firms.”
- Group policies, providing more clarification of the FCA’s concerns
- Online harms
- Extending the SM&CR to Recognised Investment Exchanges and Credit Ratings Agencies
There is no change in relation to the following sections, which remain in the report:
- Types of contract which might be contracts of insurance
- Appointed Representatives