FCA Dear CEO letter – platforms portfolio strategy letter

FCA Dear CEO letter: platforms portfolio strategy letter

Background

• FCA Dear CEO letter: platforms portfolio strategy letter; published by the FCA on 6 February 2020.
• The letter is signed by Debbie Gupta, Director of Supervision – Life Insurance and Financial Advice.
• This letter is relevant to all firms allocated to the FCA’s “platforms” portfolio.
• The FCA assigns firms to a ‘portfolio’ based on their primary business model. The FCA regularly analyses each portfolio and agrees a strategy to take pre-emptive action on the firms and issues posing the greatest harm.

Impacts

The Senior Managers & Certification Regime (SM&CR) was extended to solo-regulated firms, including platforms, from 9 December 2019. The FCA expects each CEO to ensure there is clear accountability within their firm’s senior management and for individuals to have a clear understanding of their roles and responsibilities and of the issues set out in this letter.  

The platform sector has grown rapidly both in terms of assets under administration and customers in advised, direct to customer and workplace channels. Customers and advisers rely on the infrastructure, information and services provided by platforms.

This Dear CEO letter lists many key harms alongside FCA expectations:

• Technology and operational resilience
• Third party governance
• Conflicts of interest
• Investment Platforms Market Study (IPMS)
• EU Withdrawal

The FCA reminds each CEO that they are responsible for ensuring that their firm meets FCA requirements and takes account of the expectations set out above, and should take all necessary action to ensure these are met. The FCA will use the SM&CR to engage directly with accountable individuals on areas of concern.  

Timeline with relevant dates to be logged on regulatory calendar

• FCA Dear CEO letter published on 6 February 2020

Next steps

For any queries or to discuss further, the FCA asks CEOs to contact its dedicated Supervision Hub on 0300 500 0597. This is the primary contact for a firm’s day-to-day interactions with the FCA.