1. About us
  2. What we do
  3. How we regulate
  4. Compliance approach

Compliance approach

Page last updated: 23 Apr 2019

We take a risk-based approach to our monitoring and surveillance activities, meaning we prioritise resources to those participants or practices that present the greatest risk to fair, efficient and transparent financial markets.

Our compliance approach

Our monitoring and surveillance work is outcome focused, so we consider whether compliance is achieved and the desired outcomes for customers are delivered.

Our compliance strategy

Our compliance strategy emphasises a 'top of the cliff' approach and focuses on lifting the standards of the businesses and professionals we regulate.

We seek to foster a culture where all market participants proactively work to set appropriate standards; put in place a robust approach to managing and monitoring compliance and willingly share information with us.

Monitoring outcomes

Where our monitoring or enquiries identify non-compliance, we have a range of tools available to deliver a timely, effective and proportionate response. We may undertake a further inquiry or expect the participant to adjust its compliance, and we may follow up to ensure that this is done. In some cases, notices, warnings, directions or enforceable undertakings may be appropriate. Further or serious non-compliance might result in stronger action, such as suspension or removal of licences or other enforcement action.

We are committed to an open and educative approach so all financial markets participants have clear and well-understood responsibilities. We publish summaries of the aggregate findings from our monitoring and surveillance to assist participants in understanding our expectations and enable them to check their compliance and raise standards if necessary.