18. regulating firms and individuals

Question 1

Senior Managers and Certification regime

Answer 1

FCA regulates activities and individuals with in a firm

Question 2

SM&Cr framework

Answer 2

Core
Enhanced
Limited scope

Question 3

Certification regime

Answer 3

Individuals in certified functions

Question 4

FCA’s ten principles for supervision

Answer 4

1) Ensuring fair outcomes for consumers and markets.
2) Being forward-looking and preemptive - identifying potential risks and taking action before they have a serious impact.
3) Being focused on the big issues and causes or problems - resources are focused on issues that may significantly impact the FCA’s objectives.
4) Taking a judgement-based approach.
5) Ensuring firms act in the right spirit - not just complying with the letter of the law but with a focus on considering the impact of their actions.
6) Examining business models and culture and the way they impact on consumer and market outcomes.
7) An emphasis on individual accountability.
8) Being robust when things go wrong, making sure problems are fixed, consumers are protected and compensated, poor behaviours is rectified and root causes eliminated.
9) Communicating openly with the industry, firms and consumers.
10) Having a joined-up approach to ensure that messages are provided are consistent.

Question 5

FCA firm categories

Answer 5

Fixed Portfolio : Banking and insurance groups

Flexible portfolio: Firms with retail customers or a significant wholesale presence

Question 6

FCA Supervision Model

Answer 6

1. Pillar 1= Proactive firm or group supervision
2. Pillar 2= Event driven reactive supervision
3. Pillar 3= Issues and products

Question 7

8x FCA enforcement

Answer 7

1. Variation of firms permission
2. Withdrawl of approval
3. Injunction
4. restitution
5. redress
6. Disciplinary
7. Disclosure
8. Enhanced supervision