/regulation & compliance

News and resources on regulation, compliance, legal and governance issues for banks and fintechs.
FCA to introduce 'regulatory nursery' for newly-licenced firms

FCA to introduce 'regulatory nursery' for newly-licenced firms

The UK's Financial Conduct Authority is to establish a 'regulatory nursery' in the Autumn to ensure keener oversight of newly-authorised institutions.

The initiative was unveiled by FCA chief Nikhil Rathi in a speech given as part of UK Fintech Week.

"Currently, firms gain regulatory status and are treated in the same way as a firm with a long track record," he says. "The regulatory nursery will keep us in close contact with firms immediately post-authorisation so we can provide support and, where we need to, intervene earlier to steer firms in the right direction."

Rathi also announced plans to expand the watchdog's regulatory Sandbox from a quarterly proposition to a year-round application process boosted by better advertising.

The FCA will also extend its Digital Sandbox pilot programme with the City of London Corporation beyond Coranavirus recovery projects to focus specifically on sustainability. The move coincides with the FCA's appointemnt yesterday of its first sustainability lead in the form of Sacha Sadan as director, Environmental, Social and Governance.

"Financial innovation is vital if we are to deliver net-zero economy," says Rathi. "When he joins in the summer, Sacha will accelerate our work to encourage the development of a green, sustainable investment market, underpinned by investor protection and innovative use of data."

Comments: (1)

Andrew Smith
Andrew Smith - RTGS & ClearBank - London 21 April, 2021, 10:321 like 1 like

I think the FCA needs to keep a closer eye on all regulated businesses. Sadly, those with the "longest of track records" are often the ones who have been time and time again proven to be misselling products, forming in-approrpiatly close relationships with corporates, failing on so many levels of conduct, especially duty of care. We have even seen blatent "cover ups" and yet the regulator seems powerless to really investigate or hold to account.

People in regulated businesses change frequently, i think every time a business goes through some serious amount of change, especially at that senior manager level, the company needs to be put back into the nursery....