Recommendation 24

The FCA and PRA must do more to improve supervisory staff’s practical understanding of financial services firms. We recommend that the FCA and PRA explore developing a formal secondment system to both send supervisory staff out to regulated financial services firms, and to bring employees from regulated firms in. We recognise that there are practical issues to consider—regulatory capture must be avoided, and commercial confidentiality must be protected—but appropriate protections could be put in place.