FCA admits lack of resources to monitor small firms

Regulator is consulting on its 'mission'

Carmen Reichman
clock • 2 min read

The Financial Conduct Authority (FCA) has admitted it does not have sufficient resources to monitor every firm individually but said it was using artificial intelligence to identify issues in the market.

In a consultation on its future mission, the regulator said new forms of technology allowed it to evaluate the data it collects from the industry in order to identify risk and specific targets for monitoring. This includes complaints data and firms' returns, such as advisers' Retail Mediation Activities Returns. It said: "We do not have, or aim to have, sufficient resources to monitor every firm individually, though improvements in data science are improving our targeting of individual firms for individual attention. "It does not, however, mean that these firms will not hear from the ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Agile IT needed as rapid regulation change becomes the norm

Agile IT needed as rapid regulation change becomes the norm

'Gone are the lengthy consultation and rule-setting cycles that often took several years'

Paul Muir
clock 15 April 2024 • 6 min read
Leveling up the playing field when it comes to picking skilled persons

Leveling up the playing field when it comes to picking skilled persons

Given the prerequisite for accuracy, a rigorous selection process is essential

Richard Farr
clock 15 April 2024 • 4 min read
A practical way forward: Utilising hybrid to close the advice gap

A practical way forward: Utilising hybrid to close the advice gap

Will the FCA's advice/guidance review increase access to advice?

Chet Velani
clock 02 April 2024 • 6 min read