FCA Compliance — What You Should Know

Known as the Financial Conduct Authority, the FCA is responsible for maintaining the integrity of the financial market in the United Kingdom. Although not part of the UK government, the FCA retains an upstanding reputation in the community and counts as its members some of the largest firms in the market, both by wholesale and retail companies in finance.

FCA Coverage for Compliance

FCA compliance covers a wide array of information starting from all business firms and the people involved in said firms, to the application for specific business sectors in the financial industry.

That said, all credit firms are expected to comply with the following requirements:

  • Threshold Conditions – Minimum conditions to become authorized
  • Senior Management Arrangements – Responsibilities of the management
  • Principles for Business – The responsibilities of all firms under the FCA
  • Fit and Proper Test for Approved Persons – Minimum requirements for approved individuals in the firm
  • Statements of Principle and Code of Practice for Approved Persons – Basic obligations of approved individuals
  • Training and Competences – Requirements for staff
  • Financial Stability and Market Confidence Sourcebook – Requirements regarding the financial stability of the firm
  • Fees Manual – Payment for funding the FCA, etc
  • General Provisions – Interpreting the handbook

Other Compliance Concerns

General FCA compliance also includes:

  • Prudential Standards – This refers to the prudential requirements for different firms.
  • Business Standards – This pertains to the day-to-day operations of a company and the dos and donts of said operations.
  • Redress – This concerns the process of handling customers, specifically complaints and compensations of the financial firm.
  • Regulatory Processes – The manual pertaining to the authorization of the FCA and the PRA (Prudential Regulation Authority).
  • Specialist Sourcebooks – This is a very important aspect of FCA compliance, as it pertains to the specific financial firm and the regulations for operation. This involves firms operating specifically in: Credit Union, Consumer Credit, Investment Funds, Collective Investment, Professional Firms, Regulated Covered Bonds, Recognized Investment Exchanges, etc.
  • Regulatory Guides
  • Listing, Prospectus, and Disclosure

All these can be further broken down into sub-categories that financial firms must meet in order to retain their position as part of the FCA.  Note, the FCA are making increasing use of the attestations process. Thanks for the heads up Pragmatic Compliance.

Why Comply With the FCA?

With FCA widely acknowledged when it comes to integrity, financial firms that are part of the organization are automatically seen as reliable companies. Not only that, but the network also makes it possible for different firms to consolidate information and essentially level the playing field in the financial industry.

 

For more information about FCA compliance, it’s best to check the main website of the company. Note that due to the extent of the coverage, large firms typically hire a compliance specialist to help them meet all business expectations.

Adam Wilson