FCA announces ‘regulatory nursery’ for new companies
The UK’s Financial Conduct Authority (FCA) has unveiled plans to establish a ‘regulatory nursery’ for newly-authorised financial services companies, creating a period of greater oversight and guidance as they develop.
“Currently, firms gain regulatory status and are treated in the same way as a firm with a long track record,” said FCA Chief Executive Nikhil Rathi, in a speech at UK Fintech Week. “The regulatory nursery will keep us in close contact with firms immediately post-authorisation so we can provide support and, where we need to, intervene earlier to steer firms in the right direction.”
This clever yet relatively simple innovation strikes us as a good way for regulators like the FCA to help new entrants to financial markets quickly come to grips with their responsibilities (including reporting) and we will be interested in the results.
Read more here.