FCA cuts back direct firm control in supervision overhaul

The regulator is swapping its supervision categories C1-C4 for new ‘fixed portfolio' and 'flexible portfolio' categories. Broadly speaking the largest firms, which were previously in C1 or C2, will now be classed as fixed portfolio and will continue to be allocated a supervisor who will deal with them directly. Advisers, currently held within groups C3 and C4, as well as C2 for some larger firms, will become part of the flexible portfolio and subject to a more "event-driven reactive supervision" as well as thematic work, said acting chief executive Tracey McDermott. The change will...