FCA Update: Review of Requirements, Limitations and Directions

The Financial Conduct Authority (FCA) has recently announced a review of the requirements, limitations, and directions attached to firms’ permissions. This is part of the FCA’s broader initiative to ensure regulatory permissions remain accurate, proportionate, and reflective of the actual activities firms are undertaking.

The regulator will specifically be looking at requirements, limitations, and directions which may no longer be relevant, especially if a firm’s business model or activities have changed.

 

Key Objectives of the Review Include:

• Removing outdated or unnecessary conditions which no longer serve a regulatory purpose.
• Enhancing transparency and efficiency in the FCA’s supervision of authorised firms.
• Ensuring proportionality in the way firms are regulated by avoiding disproportionate demands based on outdated information.
• Strengthening the link between authorisation and ongoing supervision, by aligning regulatory permissions with the firm’s current business activities.

 

What Does This Mean For Firms?

The FCA may contact authorised firms to verify the ongoing relevance of their current permissions and associated regulatory directions and may amend or remove them where they are deemed no longer appropriate.

 

Firms Should Treat This as a Call to Action and Should:

• Undertake a proactive review of their permissions and related regulatory requirements.
• Assess whether existing limitations or directions are still applicable to their business model.
• Engage early with the FCA where changes are needed or where clarification is required.
• Ensure their public regulatory profile is an accurate reflection of their current operations and client base.

 

At Objectivus, we work with firms to help them maintain a robust and accurate regulatory profile. This includes reviewing existing permissions, liaising with the FCA where adjustments are appropriate, and advising on best practice governance and control frameworks. Firms that take a proactive approach will be better placed to demonstrate strong oversight and avoid unnecessary scrutiny.

We would be pleased to assist firms with a structured review of its permissions or with support when engaging with the FCA on this topic.