FCA increases scrutiny over unauthorised devices

The Financial Conduct Authority (FCA) has warned financial firms that off-channel communications using unauthorised devices and apps are under close scrutiny.

Speaking on the matter with Compliance Week, Spencer West Partner Karl Foster said the regulator’s review signals a stronger focus on accountability and a shift towards enforcement.

“With the FCA keen to enforce a compliance or consequence culture, they will be watching closely how the financial services sector reacts to their review,” he said.

“Firms must proactively consider what reasonable steps they need to take. One thing is certain: a box-ticking exercise is not sufficient.”

The FCA has made clear that management and executives will be held to account if they fail to follow their own policies. This follows findings that senior leaders are among the most likely to breach internal communication rules.

Karl’s comments underline the FCA’s shift towards stronger enforcement and leadership accountability. Firms need to take meaningful, proactive steps to manage off-channel communications and ensure their policies are followed at all levels.

Read the full article on Compliance Week (behind a paywall): U.K. enforcement appetite over off-channel comms grows as U.S. wanes