FCA AML supervision: where will the regulatory lines be drawn?
Summary
The government plans to transfer AML and counter-terrorist financing supervision for professional services firms to the FCA, with conveyancing firms expected to be among those affected. The article highlights that implementation is still some way off, with primary and secondary legislation still needed and important questions remaining about overlap, duplication, costs and practical supervision arrangements.
Why it matters
Residential conveyancers will need to understand how FCA supervision will interact with existing legal regulators such as the SRA and CLC. Surveyors involved in transactions may also see knock-on effects where AML, source-of-funds and wider fraud-related issues affect deal progression and compliance expectations.
Key points
- FCA is expected to become the AML/CTF supervisor for professional services firms, including conveyancing firms.
- SRA and CLC will continue to regulate firms on wider professional responsibilities.
- Government has acknowledged possible overlap and grey areas, with co-operation and information-sharing proposed.
- Firms may face questions about duplicate checks, fit and proper assessments, reporting and systems changes.
- Cost implications remain unclear, including whether FCA fees will add to existing regulatory costs.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
