Supervising firms in SRO

In most instances, firms in SRO are supervised in the same way as other authorised firms (see Chapter 1 of our Approach to Supervision[1]). For example, we may choose to dedicate supervision teams to certain firms.

Firms within SRO will also be subject to portfolio analysis. Where they cause harm, or pose a significant risk of causing harm, we may use our regulatory tools. For example, we can vary a firm’s permission or impose a requirement.

Some rules may apply to your firm differently if it is in SRO

In some cases, firms in SRO are subject to different rules than applied to them when they were passporting into the UK – for example, rules in relation to safeguarding client money or custody assets, or status disclosure. See more information about the rules that apply to firms in SRO[2].

Here there will be different reporting requirements and firms will receive contact from our supervisors that they may not have received in the past.

Your firm may also need to contact us proactively, for example because of Principle 11 (Relations with regulators)[3] which requires that your firm deals with its regulators in an open and cooperative way, and must appropriately disclose to us anything relating to the firm for which that we would reasonably expect notice.

However, generally matters which were reserved to the home state before the end of the transition period can be fulfilled by substituted compliance and so might not require reporting to us.

Firms in the regime can also contact us[4] as other authorised firms currently do.