How Do I Comply with the FCA Rules?
Nov
Complying with the FCA rules is a twofold process. Firstly, you will need to have policies and controls in place to comply with the regulations before carrying out regulated activities. If you will be performing a regulated activity, you will need to apply for FCA authorisation.
Secondly, if you are already authorised by the FCA, you will need to maintain your compliant status. This means ensuring that regulatory policies and procedures are up-to-date and continue to be effective. As regulations and rules change, so to must your controls and policies.
What are the FCA Rules?
How do you find the FCA rules that you need to be complying with? Luckily, the regulator has the FCA Handbook for this very purpose. The handbook is made up of modules, sourcebooks and guidance. Together, these build an extensive portfolio of the rules, standards and guidelines that authorised firms must adhere to. There are several important modules that we have explained in more detail below.
High Level Standards
The high level standards section applies to most regulated firms. They include the Principles for Businesses and Systems and Controls modules. Adherence to these modules is mandatory and most require the implementation of policies and controls to evidence compliance. This section also includes the Threshold Conditions. Authorised firms must demonstrate that they meet each conditions minimum requirements.
5 Theshold Conditions
- Location of Offices
- Effective Supervision
- Appropriate Resources
- Suitability
- Business Model
