FCA Urges Financial Firms to Improve Treatment of Politically Exposed Persons

FCA calls for improved treatment of Politically Exposed Persons by refining definitions, reviewing statuses, enhancing communication, and tailoring risk assessments.

FCA_Urges_Financial_Firms_to_Improve_Treatment_of_Politically_Exposed_Persons
freepik.com

The Financial Conduct Authority (FCA) has called upon UK financial firms to enhance their treatment of Politically Exposed Persons (PEPs) and their families, ensuring fair and proportionate scrutiny.

While most firms reviewed by the FCA did not excessively scrutinize PEPs or deny them accounts, there remains room for improvement. The regulator has directed firms to refine their definition of PEPs, promptly review PEP status upon leaving public office, communicate effectively, and tailor risk assessments accordingly.

This call for action follows concerns about how UK firms comply with requirements for enhanced checks on PEPs, stemming from global standards set by the Financial Action Task Force. Although the FCA acknowledges that no firms denied accounts based on PEP status and most did not subject them to disproportionate checks, it emphasizes the need for further improvements across the board.

In some cases, the FCA is initiating independent reviews of firm practices. Additionally, it is proposing changes to its guidance to reflect the lower risk associated with UK PEPs, clarify exemptions for non-executive board members of civil service departments, and provide greater flexibility in approving PEP relationships.

The FCA invites feedback on the proposed guidance changes until October 18, 2024, and urges firms to implement identified improvements promptly. Ongoing monitoring and potential action will ensure fair treatment of PEPs.

Source: FCA Press Release

Share
Subscribe
Notify of
guest

0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
© 2024 AlertoPedia.com. All rights reserved. The content on this website is for informational purposes only and should not be considered financial advice. Links to third-party sites may result in compensation through affiliate partnerships.
How We Rate
how we rate

At AlertoPedia, we rate companies based on several key factors including regulatory status, website status, geographical licensing, and historical data concerning any warnings or sanctions from financial authorities, reflecting the company's trustworthiness. 

Regulatory Influence

The licensing status of a company plays a significant role in our review process. Companies regulated by reputable authorities typically receive a more favorable rating, reflecting their adherence to stringent financial standards and consumer protection laws. 

Ongoing Monitoring

Ratings are initially established based on the most current data available and are subject to change based on new information or regulatory actions. We continuously monitor regulatory actions and company behavior to ensure our ratings remain current and accurate.