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FCA Dear CEO: Platforms Portfolio Strategy Letter

FCA Supervisory Strategy in relation to Platforms

10 February 2020

Following on from their letters on supervisory strategy to Investment Firms, Asset Managers and Alternative Investment Firms in January, the FCA has now written a Dear CEO letter to Platforms in relation to the same.

Dear CEO: Platforms portfolio strategy letter

The FCA’s Dear CEO letter to Platforms of 6 February 2020 informed of their intended approach to their supervisory strategy for this sector. Of particular focus for the FCA are their key concerns that include:

• Technology and operational resilience
• Third-party outsourcing
• Conflicts of interest
• Transfers (as highlighted in the Investment Platforms Market Study (IPMS) last year)
• Best Execution (as highlighted in their IPMS final report of March 2019)
• Information on Costs and charges (again as highlighted in IPMS final report)
• EU Withdrawal

All Firms within this sector should review the key areas of concern as raised by the FCA within this letter and ensure that any appropriate and necessary action is taken to ensure FCA requirements are met.

The FCA has advised that they will engage directly with accountable individuals on areas of concern and will target their supervisory efforts on those firms where there is evidence that expectations in relation to the above are not being met, which is of course in addition to the FCA’s wider supervisory monitoring to ensure firms maintain adequate financial resources and adequate CASS controls.

To read a full copy of the Dear CEO Letter, click here.

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