FCA Papers on Approaches to Regulation, Supervision and Enforcement

The U.K. Financial Conduct Authority (the “FCA”) has followed its 2017 papers on the principles and approaches it will apply to regulation, consumers, competition and authorization with two March 2018 papers on supervision and enforcement.  See Press Release, which sets forth links to the two papers, Approach to Supervision and Approach to Enforcement.  The FCA says that it plans to take a forward-looking, risk-based approach to supervision.  It will examine particular markets through sectoral analyses and portfolio-specific assessments.  With respect to enforcement, among other things the FCA plans to use its penalty policy to incentivize better behavior when issues arise.  The consultation period on these final two papers ends on June 21, 2018.