What is the main focus of the 'remedial' supervision tool utilized by FCA?

The 'remedial' supervision tool utilized by the Financial Conduct Authority (FCA) primarily focuses on addressing specific compliance failures. This tool is designed to provide a structured response to identified deficiencies within a firm’s regulatory practices. By concentrating on compliance failures, the FCA aims to ensure that firms not only correct these shortcomings but also enhance their overall compliance culture. This may involve tailored interventions, which can include requirements for the firm to develop and implement action plans to rectify compliance issues, thereby reducing the risk of future breaches.

In contrast, improving sales techniques, enhancing client acquisition processes, and promoting competitive strategies relate to broader business objectives that do not necessarily align with the FCA’s regulatory focus. The FCA’s objectives are centered on ensuring that firms operate within the legal framework and protect consumer interests, making the emphasis on compliance the most critical aspect of their remedial supervision efforts.