The FCA has released a ‘Dear CEO’ letter to wholesale brokerage firms. The FCA’s wholesale broking strategy will focus on financial resilience, remuneration, governance and culture and control functions.

The letter highlights:

  • Significant financial crime and market risks arising from the sector,
  • Weaknesses identified in financial crime controls, conduct and culture
  • Expectations of firms’ risk management
  • Insights from recent FCA oversight of wholesale brokerages,
  • The forthcoming supervisory strategy.

By the end of February 2023, the FCA expects all CEOs to have considered the FCA letter and to have discussed and agreed actions and next steps with their Boards

https://www.fca.org.uk/publication/correspondence/wholesale-brokers-portfolio-letter-2023.pdf

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