FCA publishes approach document on international firms

By Harrison Folland

The FCA has published its approach document setting out its approach to international firms.

The document sets out the FCA’s approach to the authorisation and supervision of international firms providing, or seeking to provide financial services requiring authorisation in the UK. The document applies to firms with authorised status, current applicants and those intending to apply for authorisation in the future.

The approach document consists of three main sections:

• An overview of the FCA’s approach, including the minimum standards for authorisation, issues relating to the choice between a branch and subsidiary and risks of harm relevant to international firms. It also sets out the decisions that may be taken by the FCA after assessing an international firm’s compliance with the minimum standards.
• The main considerations in the FCA’s approach, covering the general expectations set by the FCA for international firms including personnel, systems and controls. This section also considers the FCA’s approach to assessing an international firm’s risk of harm (focusing on retail harm, client asset harm and wholesale harm).
• Mitigating identified risks, which considers how international firms can mitigate the retail, client asset and wholesale harms identified in the FCA’s assessment.