Context
Following a review of its data, the FCA is to review and update some 11,000 requirements, directions and limitations applied to over 9,000 firms. The FCA’s review sought to assess whether the data it holds is still accurate, still reflects the current wording it uses for requirements, directions and limitations, and still reflects any changes to legislation and firms’ business models since they were imposed. Requirements, directions and limitations are typically published on the Financial Services Register.
Key points to note and next actions
- The FCA found that some of our data was out of date, had been superseded by new content or needed small errors correcting. The FCA is now taking action to fix these issues.
- Requirements and directionsare obligations the FCA places on firms to take specific actions or cease certain activities. For example, the FCA may impose a requirement on a firm preventing them from taking on new customers or requiring them to retain assets so they can meet future liabilities owed to consumers.
- Limitationsare applied to firms’ Permissions and typically limit the scope of the activity the firm can do. For example, most firms that have permission to carry out the regulated activity of debt counselling have a ‘no debt management’ limitation. This limitation is used to prevent firms like motor dealers providing holistic debt advice.
Where the FCA has identified that changes are needed, its next steps will involve:
- Immaterial updates: Where the FCA needs to make small amendments, and these do not change what a firm can or cannot do, the FCA will make these automatically.
- Substantive changes: Where the FCA thinks it may need to make bigger changes, or remove a requirement, direction or limitation, it will contact the firm and find an efficient way of making the change.
- The changes will take place over the next few months. Firms do not need to take any action unless the FCA gets in touch, but should contact the FCA in the usual way if they have any concerns.
- Any amendments made may result in changes to firm information displayed on the FS Register.