The FCA has published a consultation into proposed changes to its decision making processes. The proposals restrict the decision-making remit of the Regulatory Decisions Committee ("RDC") and expand the scope of the FCA's Executive Procedures.

The proposals

The RDC is a Committee of the FCA Board that operates separately from the rest of the FCA. The RDC currently has decision making power in the following areas:-

  • The imposition of a fundamental variation of permission or requirement in relation to a firm
  • Any decision in relation to a firm's authorisation or an individual's approval that is contested
  • A decision to take action in cancellation of authorisation cases where a firm does not meet the FCA's regulatory requirements and the action is contested
  • Decisions to commence civil and / or criminal proceedings

The proposed changes would transfer these powers to FCA staff, although the RDC will continue to make decisions in relation to contentious enforcement cases in which the FCA is proposing a disciplinary sanction.

The FCA has stressed that these proposals are designed to increase efficiency, improve accountability and "help to increase the speed and reduce the regulatory costs of dealing with firms and individuals that fail to meet the FCA standards".

The deadline for responses to the consultation is 17 September 2021. If the proposals are accepted, the FCA has stated that it intends to publish a Policy Statement in or around November 2021.

If you would like to discuss FCA investigations and enforcement action, please contact Paul Marshall, James Millward or Lisa Kinroy.