ShareSoc supports FCA proposal for criminal background checks on owners and controllers of financial institutions

ShareSoc has responded to FCA consultation CP24/11

ShareSoc represents the views of individual investors to Government and Regulators. One way we do this is by responding to their consultations, of which there have been quite a lot recently – we can expect more with the recent change in Government.

On 30 July 2024, ShareSoc and UKSA made a joint response to the latest Financial Conduct Authority quarterly consultation CP24/11: FCA Quarterly Consultation No. 44

There were 14 questions in the consultation, but we only responded to Q 2.1. We agreed with the regulator’s proposals to require a DBS (Disclosure & Barring Service) check or equivalent at the Authorisation Gateway. This seems highly appropriate and consistent with the SM&CR (Senior Managers and Certification Regime) regime.

We see the key benefit of the proposal as reducing the likelihood of firms being set up or taken over for dishonest purposes under the umbrella of FCA authorisation. It seems, at present, that bad actors could set up firms, conduct their frauds, and then disappear before anyone has time to notice or act.

We also pointed out that it may be valuable for the FCA to maintain a database of failed applicants to ensure they do not slip through the net on a second try.

The full response can be read here.

One comment
  1. Gavin Palmer says:

    Well done

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