A new approach to visiting firms has been established, and it includes the Financial Conduct Authority (FCA) reviewing all the advisers’ non-regulated activities. These non-regulated activities include the customer service and the lifestyle planning, and are a part or this new approach for which the FCA hopes is going to add some transparency to the work of firms.
The very reason why the FCA has widened the scope of the visits it pays to the companies is because of the fact that it wishes to better understand just how the firms work, and at the same time protect the consumers by minimizing the risks they have to take.
According to a spokesperson of the FCA, who has said that this authority does not look at the activities that are non-regulated because of the fact that they believe that they could impact the firm as a whole in a negative way, the main goal here is the make sure that the FCA has the complete picture and know as much as it can. This is being done in order for this authority to be as productive as possible, and to make all of their decisions based on judgments, something that wasn’t that easy before this new approach was used.
Also, another part of this approach has the Financial Conduct Authority asking the firms that have been applying for the FCA authorisation process, all the details about their work and business in order to decide if the firm is completely sustainable, and to do everything it can in order to ensure it.
The experts in the FCA field agree that this is an approach that is going to give the Financial Conduct Authority a chance to take a look at the entire structure of a firm that’s applying for authorisation. The only reason why the authority is doing this is to ensure that the business of the firm works and that it does not offer or constitute any risk for the consumer.