FCA stops 200 trading firms over ‘basic’ requirements

More than 200 firms had their authorisations cancelled by the Financial Conduct Authority in the 12 months to the end of June, the regulator has revealed.

In its latest regulatory round-up, the FCA said these firms had their authorisations cancelled for failing to comply with “basic regulatory requirements”.

These could include failing to submit FCA returns or failing to pay fees to the regulator.

In total 207 firms had their authorisations cancelled by the FCA.

Firms cannot trade without FCA authoristion.

Over the same time period the FCA’s threshold conditions team, which handled these cases, accepted 1,387 referrals of firms who had failed to satisfy the minimum standards.

Of these, 824 firms still managed to retain their authorisation by submitting their outstanding returns or paying their overdue fees.

Meanwhile 122 firms applied to cancel their FCA authorisation altogether.

The FCA said that where firms are repeatedly referred to enforcement for failing to comply with basic requirements, enforcement will recommend their permissions are cancelled even if the firms comply late.

The regulatory round-up also included a number of issues affecting financial advisers, including Mifid II.

The FCA has reminded firms that from 3 January 2018 they will only be able to carry on activities that require authorisation under Mifid II if they have the required regulatory permissions.

Any firm which needs to change their permissions and has not yet done so should complete an application “without further delay”.


(Extracted from The FT Adviser – https://www.ftadviser.com/regulation/2017/08/17/fca-stops-200-trading-firms-over-basic-requirements/)

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