The FCA has announced that it is reviewing and updating the requirements, directions and limitations applied to over 9,000 firms.
This follows a review to check that the data it holds is still accurate, reflects the current wording used, and reflects any changes to legislation and firms' business models since they were imposed.
The FCA says it found that some of its data was out of date, had been superseded by new content or needed small errors correcting.
The regulator announced that it is now taking action to fix the issues, making sure the data we hold on firms is consistent, up-to-date and necessary. This, it says, "means firms get a better service from us, consumers have access to clearer information and supervisors work with the most up-to-date data".
Background to requirements, limitations and directions
Requirements and directions are obligations the FCA places on firms to take specific actions or cease certain activities. For example, it may impose a requirement on a firm preventing them from taking on new customers or requiring them to retain assets so they can meet future liabilities owed to consumers.
Limitations are applied to firms' permissions and typically limit the scope of the activity the firm can do. For example, most firms that have permission to carry out the regulated activity of debt counselling have a 'no debt management' limitation. The FCA says this prevents firms like motor dealers providing holistic debt advice.
Firms can voluntarily agree to have a requirement, direction or limitation placed on them (a VREQ, VDir or VVOP) and the FCA can also use its own powers to impose a requirement or directions on a firm (an OIREQ, OIDir or OIVOP).
Requirements, directions and limitations are typically published on the Financial Services Register.
Next steps
Where the FCA has identified that changes are needed, the next steps will involve:
Immaterial updates: Where the FCA needs to make small amendments, and these don't change what a firm can or cannot do, it will make these automatically.
Substantive changes: Where it think it may need to make bigger changes, or remove a requirement, direction or limitation, the FCA will contact the firm and find an efficient way of making the change.
The changes will take place over the next few months. The FCA noted that firms don't need to take any action unless it gets in touch but should contact the regulator in the usual way if they have any concerns.
