The Financial Conduct Authority (FCA), the UK financial regulator, has published a report detailing the findings of its latest Practitioner Panel survey of more than 4,000 firms, designed to provide the FCA insights into its effectiveness.
The survey revealed a high level of awareness among firms of the FCA’s initiatives on operational resilience. The key findings were:
Operational Resilience:
-
100% of fixed* firms claimed to be aware of the FCA’s work to ensure that firms are operationally resilient.
-
98% of fixed firms said that operational resilience had been prioritised over the previous 12 months.
-
88% of flexible* firms claimed to be aware of the FCA’s work to ensure that firms are operationally resilient.
-
57% of flexible firms said that operational resilience had been prioritised over the previous 12 months.
Risk identification:
- 40% of fixed firms and 32% of flexible firms felt that the FCA’s approach to identifying risk was: “Mainly reactive”.
Ability to quickly adapt regulation in response to innovation and new challenges:
-
33% of fixed firms and 34% of flexible firms considered the FCA: “Able to adapt its regulatory requirements to respond efficiently to innovation and new challenges”.
Full details available here.
*The FCA categorises firms as “fixed” or “flexible” depending on how closely they oversee them. Fixed firms are a small number of typically large firms which require the highest level of regulatory attention, whilst flexible firms are typically smaller and are regulated collectively.
[Image Source: Financial Conduct Authority]
