The U.K. Financial Conduct Authority (FCA) on Wednesday published two documents that explain its approach to regulation in more depth.
The Approach to Supervision and the Approach to Enforcement documents spell out how the FCA carries out its main activities, and aim to provide transparency to the U.K. regulator’s thought process and decision-making.
The Approach to Supervision shows how the FCA aims to be more forward-looking and pre-emptive in its supervision of firms by focusing on business models and the drivers of behaviour in firms.
The Approach to Enforcement outlines how the FCA conducts investigations and its powers. It also shows how enforcement sets out to achieve fair and just outcomes in response to misconduct and to ensure FCA rules and requirements are obeyed.
“The most visible parts of the FCA’s work, supervision and enforcement are critical to helping us fulfil our objectives. For supervision this means overseeing regulated firms to identify, prevent or reduce harm to consumers and markets. And for enforcement our overriding principle is to provide substantive justice, aiming to achieve fair and just outcomes in response to misconduct and to ensure our rules and requirements are followed,” says Andrew Bailey, FCA chief executive, in a statement.
“’We hope today’s Approach documents outline clearly and in a transparent way, exactly how we fulfil our objectives through supervision and enforcement activity and why we make the decisions in the manner that we do,” he continues.
Both approach documents are open for consultation until June, 21. The final approach documents will be published later this year.