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The independent report into the FCA’s supervision of London Capital & Finance makes for interesting reading. Not for the first time, the FCA has been criticised for not looking at the wider picture. The report found it to have taken too narrow a view of its own supervisory responsibilities, largely ignoring clear indications of wrong doing when it came to LCF’s non-regulated activities.
The report’s conclusion that “The FCA did not discharge its functions… in a manner which enabled it to effectively fulfil its statutory obligations” is damning indeed. The repeated instances of failure to have adequate policies and processes in place will stick in the craw of regulated firms that have themselves been found to be wanting. As the FCA prepares for a new, post-Brexit era, it cannot afford own goals that undermine its credibility.
Notwithstanding its own issues, the FCA will continue to regulate and one thing is certain, the new year will bring new challenges for both the regulator and regulated firms.
As a difficult year draws to close we wish you a very Happy Christmas and better times ahead.