FCA updates perimeter report

The FCA has updated its Perimeter Report on its website.  It was last updated in March 2023. Among the issues discussed are:

• FCA’s general approach to the perimeter;
• when it will take action against unauthorised activities;
• its partner agencies;
• addressing fraud risks involving authorised firms;
• how it has strengthened the authorisation gateway for higher-risk firms that apply for authorisation;
• the challenges it faces, especially from certain business models including Appointed Representatives (and it comments it “would welcome” the next steps following Treasury’s call for evidence that closed in March 2022);
• outsourcing (updated to include the new critical third party regime);
• the general insurance perimeter, specifically overseas insurers and what “carrying on insurance business in the UK” means, and use of group policies outside their normal context;
• the MLRs perimeter;
• BNPL;
• SME lending;
• the HNWI and SCSI exemptions from the FPO – where the FCA expressly says it does not agree with the Government’s reversal of the thresholds that originally increased in January and were reversed without consultation in March. It goes further to say that, while it supported the original proposals, in fact it thinks the HNWI limit should be raised significantly and that there should be no ability for investors to self-certify themselves as sophisticated;
• the financial promotions gateway – FCA notes that it is keeping a close eye on whether firms are inappropriately using exemptions to avoid applying to the gateway;
• online harm;
• unregulated finfluencer marketing – and the new social media guidance;
• payments – including a safeguarding consultation for non-bank PSPs “later this year”;
• access to cash – the FCA expects to issue a policy statement in Q3 2024;
• cryptoassets and crypto promotions; and
• the SMCR – and a promise of a consultation paper on potential changes in Q2 2024.