FCA outlines new approach to tackling serious firm failings

Carmen Reichman
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The Financial Conduct Authority (FCA) has introduced a new approach to tackling serious failings in financial services firms by cracking down on senior level management first.

'Enhanced supervision' will see the regulator intervene more quickly when it detects "serious failings" such as a series of conduct failings, problems in more than one business area, or a poorly functioning board. The new approach means it will be able to decide at any point - by using its "judgement rather than a formal process" - which measures are appropriate and what course of action it will take, it said in a statement out on Thursday. Although developed in response to the Parliamentary Commission on Banking Standards' recommended 'special measures', the new approach applies to a...

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