FCA updates to requirements, limitations and directions

We'll amend and update around 11,000 requirements, directions or limitations applied to over 9,000 firms.

This follows a review to check that the data we hold: 

• Is still accurate.
• Reflects the current wording we use for requirements, directions and limitations.
• Reflects any changes to legislation and firms' business models since they were imposed.

We found that some of our data was out of date, had been superseded by new content or needed small errors correcting.  

We're now taking action to fix these issues. This forms part of our work to be a smarter, more efficient regulator by making sure the data we hold on firms is consistent, up-to-date and necessary. This means firms get a better service from us, consumers have access to clearer information and supervisors work with the most up-to-date data.

Background to requirements, limitations and directions

Requirements and directions are obligations we place on firms to take specific actions or cease certain activities. For example, we may impose a requirement on a firm preventing them from taking on new customers or requiring them to retain assets so they can meet future liabilities owed to consumers.  

Limitations are applied to firms' permissions and typically limit the scope of the activity the firm can do. For example, most firms that have permission to carry out the regulated activity of debt counselling have a 'no debt management' limitation[1]. We do this to prevent firms like motor dealers providing holistic debt advice.

Firms can voluntarily agree to have a requirement, direction or limitation placed on them (a VREQ, VDir or VVOP). We can also use our own-initiative powers to impose a requirement or directions on a firm (an OIREQ, OIDir or OIVOP).

Requirements, directions and limitations are typically published on the Financial Services Register.

Next steps

Where we've identified that changes are needed, our next steps will involve:

• Immaterial updates: Where we need to make small amendments, and these don't change what a firm can or cannot do, we'll make these automatically.
• Substantive changes: Where we think we may need to make bigger changes, or remove a requirement, direction or limitation, we'll contact the firm and find an efficient way of making the change.

The changes will take place over the next few months. Firms don't need to take any action unless we get in touch but should contact us[2] in the usual way if they have any concerns. 

Any amendments made may result in changes to firm information displayed on the FS Register.