FCA to streamline its decision-making processes

This will help the regulator improve how it tackles firms and individuals who don’t meet the required standards. 

As part of this process, it’s consulting on shifting some decision-making from its regulatory decisions committee (RDC) to its authorisations, supervision and enforcement divisions. This means greater responsibility for decisions will be given to senior members of FCA staff close to the matters.

This will see these staff members making a final decision on a firm’s application for authorisation or an individual’s approval that has been challenged. They’ll also be responsible for deciding to start commencing with civil or criminal proceedings.

The main goal of the proposed changes is to ensure the regulator can “move more quickly to stop and prevent harm faster.”

Commenting on the news, the FCA’s executive director of authorisations Emily Shepperd said: “The proposed changes will allow us to be more efficient by making best use of the breadth of expertise across the FCA and by putting certain decisions back to the subject matter experts. 

“As a result of that there will be greater accountability in those areas. The changes will help to increase the speed and reduce the regulatory costs of dealing with firms and individuals that fail to meet the FCA standards.

“As part of our transformation we will continue to take a fresh approach to tackle firms and individuals who do not meet the required standards. As part of this, we aim to become a forward looking, proactive regulator - one that is tough, assertive, confident, decisive and agile.”

The consultation closes on 17 September 2021. Following on from this process, the FCA will consider the feedback and aims to publish a policy statement in or around November 2021.