Source · Select Committees · Treasury Committee
Recommendation 5
5
Paragraph: 48
We accept that a degree of shared responsibility is desirable and necessary in an organisation...
Conclusion
We accept that a degree of shared responsibility is desirable and necessary in an organisation such as the Financial Conduct Authority. However, it is not readily justifiable for the FCA to require the firms that it regulates to adhere to the principles of the Senior Managers Regime but seemingly not to apply similar principles The Financial Conduct Authority’s Regulation of London Capital & Finance plc 49 internally when there are failings of practice and culture in the organisation. The FCA Board should reflect on whether it has, in this case, met the standards which it seeks to impose upon others. We believe that there are doubts as to whether it has.
Paragraph Reference:
48
Government Response
Acknowledged
HM Government
Acknowledged
8 All reporting firms moved to FCA’s new data collection platform RegData, Financial Conduct Authority, published 19 May 2021 9 Quarterly Consultation, No 32, Financial Conduct Authority, published June 2021 10 Issuing statutory notices—a new approach to decision makers, Financial Conduct Authority, published July 2021 14 Second Special Report of Session 2021–22 We have reviewed our processes and systems for our Supervision Hub to ensure that our policies and training programmes are up-to-date. The training review and sign-off processes in the Supervision Hub have been reviewed and strengthened to ensure the training materials are aligned with the wider organisation. We will continue to regularly review these policies and training. regulated firms that carry out unregulated or unauthorised activity. This is to ensure that we do not reassure consumers inappropriately. Our policies and induction training programmes have also been reviewed to ensure that they clearly articulate our position. The regulatory perimeter and the scope of the FCA’s remit