Insights — Regulation
A practical walk-through of the obligations that shape day-to-day compliance for UK-authorised firms — and how we help clients evidence them.
The Financial Conduct Authority regulates around 50,000 firms. Whether you're an investment manager, a payments business, a broker or an advisory firm, the FCA expects you to identify the rules that apply to your permissions and to evidence how you meet them — every day, not just at inspection.
This guide summarises the six areas that drive most supervisory attention. It is not legal advice; it is a framework for a well-run compliance function.
01
SYSC is the backbone of the FCA Handbook. Firms must maintain robust governance, clear reporting lines, documented systems and controls, and effective risk management — proportionate to the nature, scale and complexity of the business. Boards are expected to evidence ownership of the compliance framework, not just approve it.
02
SM&CR makes accountability personal. Senior Managers hold Statements of Responsibilities and Prescribed Responsibilities; Certification Staff must be assessed as fit and proper at least annually; and Conduct Rules apply firm-wide. The FCA expects evidence of the Duty of Responsibility — reasonable steps taken to prevent regulatory breaches.
03
The Consumer Duty raises the standard from Treating Customers Fairly to delivering good outcomes across products and services, price and value, consumer understanding, and consumer support. Firms need outcome-based MI, a nominated Consumer Duty champion, and an annual board assessment.
04
Every communication that invites or induces investment activity must be fair, clear and not misleading. The rules on high-risk investments, cryptoasset promotions, and social media all now require enhanced risk warnings, cooling-off periods and appropriate categorisation of retail investors.
05
The Money Laundering Regulations and JMLSG guidance require a documented firm-wide risk assessment, risk-based customer due diligence, ongoing monitoring, PEP and sanctions screening, and an MLRO with sufficient seniority and independence. Suspicious Activity Reports must be filed to the NCA without tipping off.
06
Firms are expected to submit accurate RegData returns on time, notify the FCA under Principle 11 of anything the regulator would reasonably want to know, and maintain complete records for retrospective review. Late, incomplete or inaccurate reporting is one of the most common triggers for supervisory action.
Work with us
Our team supports UK-authorised firms with outsourced compliance officers, mock supervisory reviews, and remediation of specific rulebook areas.
