When the conduct regulator calls

The Financial Services Authority plans to make greater use of thematic reviews going forward, but “many firms will not yet have had exposure to this particular regulatory treat,” says Richard Scrivener. He details what to expect.

Richard Scrivener is a consultant at financial services regulatory specialists Bovill. Contact him on RScrivener@ bovill.com.

In his speech on 18 April 2012, Clive Adamson, director of supervision in the forerunner to the Financial Conduct Authority – the FSA’s Conduct Business Unit – spoke about the new judgement-led, forward looking and interventionist approach that supervisors will be taking in this new world. For all but the highest impact firms he indicated a shift away from the old relationship management approach; a rather obvious ‘greater intensity and focus on conduct supervision’ and a greater use of thematic reviews delivered by ‘sector skilled supervisors’.