Small firms engaging in poor practice stand a better chance of getting caught by the Financial Conduct Authority (FCA) under the new regulatory framework as the regulator has shifted its focus on its thematic work, according to a consultancy.
Bovill wealth management consultant Neil Walkling (pictured) suggested the proposed FCA structural changes, which will strip out routine supervisory visits for small firms, are more targeted at detecting bad practice as resources have been diverted to more thematic reviews, which will include more firms. The FCA announced on 8 December it plans to merge its supervision and authorisation departments before splitting the new entity in small firm and large firm divisions. It will then remove the distinction between C3 and C4 firms - the categories for the smallest firms it supervises - a...
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