| Link(s): | Raising standards in new firms and financial promotions FCA Early and High Growth Oversight | FCA |
Context
The FCA has provided information regarding its new Early and High Growth Oversight function to help newly authorised firms adapt to supervision as they grow.
Key points to note
- During 2021 to 2022, the FCA ran a pilot with 32 newly authorised firms to help them adapt to supervision, understand the FCA’s requirements and improve their standards where they needed to.
- The pilot found one of the most common themes was how well these firms understood rules on promoting financial products to the public.
- Some firms were describing their products and services as ‘FCA approved’ on their websites. The FCA does not ‘approve’ service offerings, it authorises firms and gives them permission to offer regulated products and services.
- Some firms wrongly claimed on their websites, they “worked with the regulator to deliver a product/ service”. The FCA does not work with firms to develop what they offer.
- Some firms were advertising services that they hadn’t been given permission for. Consumers have much less protection if they sign up for services the firm doesn’t have permission to provide and the FCA can take action against them if they do this.
Next actions
None – for information and awareness.