The Financial Conduct Authority (FCA) is set to radically overhaul its processes and procedures with a raft of "significant and necessary changes", following the publication of independent reports into its handling of the London Capital & Finance (LCF) and Connaught fund scandals.
Both reports, published today (17 December), reveal significant failures in the regulator's handling of the multi-million pound scandals, and include recommendations for change at the FCA, all of which it has accepted. Most significantly, changes include "restructuring the FCA", several new hires, and implementing a "use it or lose it" policy whereby firms may have their authorisations revoked as a result of inactivity. In addition, discretionary pay awards for the FCA's executive committee members, which had been deferred in respect of the 2019/20 year, will now not be paid. In Se...
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