FCA writes to CEOs on platforms supervision strategy

Regulatory Updates | 06/02/20

The Financial Conduct Authority (FCA) has written to CEOs of platform service providers (i.e. firms in the FCA’s platforms portfolio), setting out its key concerns and expectations with regards to the supervision of platform service providers. Areas of focus include technology and operational resilience, third-party outsourcing, conflicts of interest, and the UK’s withdrawal from the EU.

Additionally the FCA reminds these firms of its findings as set out in its Investment Platforms Final Report (March 2019) and the need for firms to be considering how they will implement the FCA’s recommendations from those findings, in particular in relation to transfers, best execution and costs & charges information. As with its recent Dear CEO letters to asset managers, the FCA makes clear it will be using SM&CR to follow up with accountable individuals in areas of concern.