l Directors Feeling Increased FCA Scrutiny | SMCR Compliance

Directors feel the heat following increased FCA scrutiny

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Investigations into financial service directors’ conduct jumped by 29% in the year leading up to December 2018.

The increase from 45 investigations in 2017 to 58 in 2018 was partly driven by the FCA’s crackdown on products and services aimed at low-income customers, according to City-based law firm RPC.

Jonathan Cary, partner at RPC, said: ‘The FCA has ramped up investigations into directors it believes have used underhand tactics for personal gain. While much of the recent activity has been focused on directors of smaller firms, the FCA is clear no directors are immune.

With the FCA introducing its Senior Managers & Certification Regime in 2016 to hold senior managers personally accountable for departmental wrongdoing, the full rollout planned for December 2019 across all financial services will see ‘a further surge in investigations into directors,’ according to Cary.

https://citywire.co.uk/new-model-adviser/news/directors-feel-the-heat-following-increased-fca-scrutiny/a1231069