The Financial Conduct Authority has concerns about IT software providers who deal with regulated firms and has launched a review into how unregulated third parties affect regulated activities of authorised firms.
The FCA’s board minutes, dated 3 June, revealed independent panel the Smaller Business Practioner Panel has concerns about the effect of firms outside the FCA’s regulatory remit affecting the financial services sector, and cited IT software providers as an example of this.
The FCA board agreed the new policy, risk and research division within the FCA should review this and report to the executive committee, with any issues being brought to the board and progress communicated to the Smaller Business Practitioner Panel in due course.
The Smaller Business Practitioner Panel also made comments about prudential regulation at the FCA.
The minutes said the FCA board recognised the need to ensure there was clear communication with all firms regarding the prudential regulation that the FCA would be undertaking and asked Clive Adamson, director of supervision at the FCA, to follow this up.