FCA updates on Rule Review Framework

FCA has published its finalised Rule Review Framework. FSMA 2023 requires FCA to set this framework, which applies to all its Handbook rules, and explains how FCA sets, measures and monitors the outcome of the rules. It also includes information on how FCA monitors new as well as existing rules, and the metrics and intelligence it uses to understand whether a rule gives cause for concern.

FCA’s approach to reviewing its rules starts with proactive monitoring of data and collection of information and then, if necessary, leads on to further actions to address any concerns that the monitoring throws up. FCA also takes account of stakeholder feedback.

FCA has categorised 3 main types of rule review:

  • evidence assessment
  • post implementation review
  • impact evaluation

Depending on the review and its conclusions, FCA will then consider whether it needs to take action to improve understanding of a rule, change the rule or carry out a more detailed review.

FCA explains how the review of rules fits into its wider work, its approach to rule review and priority setting and how it sets, measures and monitors outcomes of its rules. It also says it expects to publish most of its larger post-implementation reviews and impact evaluations, and keep stakeholders updated on other reviews.


Emma Radmore