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Supervision (SUP)
18.1 Introduction
The Supervision (SUP) section of the FCA Handbook is contained within the Regulatory Processes module and provides pre/post-authorisation guidance and requirements concerning the relationship between the FCA (“regulator”) and the authorised firm (“the company”).
The overall approach in the FCA supervision model is based on the following principles:
- forward looking and more interventionist
- focused on judgement, not process
- consumer-centric
- focused on the big issues and causes of problems
- interfaces with executive management/Boards
- robust when things go wrong
- focused on business model and culture as well as product supervision
- viewing poor behaviour in all markets through the lens of the impact on consumers
- orientated towards firms doing the right thing
- externally focused, engaged and listening to all sources of information
To ensure that a firm remains compliant with the regulatory requirements, the FCA has several tools which they use to monitor and assess a firm, including: –
- desk-based reviews
- liaison with other agencies or regulators
- meetings with management and other representatives of a firm
- on-site inspections
- reviews and analysis of periodic returns and notification
- reviews of past business
- transaction monitoring
- use of auditors
- use of skilled persons
18.2 General Guidance
The company have not covered the full scope of the FCA’s supervisory approach or model in our Compliance Manual, as the aim of this manual is to provide our staff and regulators with a reference guide on how we approach and remain compliant with the regulatory requirements.
However, to ensure that our staff understand the scope of supervision covered by the FCA, we have added a summary of the main principles and activities below.
18.3 Reports by Skilled Persons
The FCA use skilled persons to collect and update regulatory required information from firms and where this is the case, all the company staff are expected to cooperate with the skilled person and provide the necessary and required assistance.
The company confirms that it will waive any duty of confidentiality owed by the skilled person to the firm which might limit the provision of information or opinion by that skilled person to the appropriate regulator.