On June 27, the UK Financial Services Authority (FSA) published a paper on the regulatory approach of the new Financial Conduct Authority (FCA), which will be one of two regulatory agencies scheduled to replace the FSA in 2013, the other being the Prudential Regulation Authority (PRA).
The paper sets out the FSA’s initial thinking on how the FCA will approach the delivery of its statutory objectives. It covers the FCA’s:
- scope, and the number of firms it is expected to regulate, either solely or jointly with the PRA;
- objectives and powers, including its approach to its new competition role and how it will coordinate with the PRA and other regulators;
- regulatory approach, including details of its attitude to proactive intervention and how it will follow up existing FSA regulatory initiatives; and
- regulatory activities, and its risk framework and supervisory framework.
It also considers how the FCA will supervise markets, and its approach to wholesale business.