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REC 4.2 The supervisory relationship with UK recognised bodies

REC 4.2.1GRP

The FCA3 expects to have an open, cooperative and constructive relationship with UK recognised bodies to enable it to have a broad picture of the UK recognised body's activities and its ability to meet the recognised body requirements.2 This broad picture is intended to complement the information which the FCA3 will obtain under section 293 of the Act (Notification requirements) or under notification rules made under that section (see REC 3). The FCA3 will usually arrange meetings between the Infrastructure and Trading Firms Department4 and members of the management body4 of the UK recognised body for this purpose. The frequency and nature of these meetings may vary in accordance with the risk profile of the UK recognised body.

REC 4.2.2GRP

UK recognised bodies are likely to develop and adapt their businesses in response to customer demand and new market opportunities. Where such developments involve changes to the way the UK recognised body operates, they are likely to involve changes to the way it satisfies the1 recognised body requirements.2

REC 4.2.3GRP

The FCA3 expects a UK recognised body to take its own steps to assure itself that it will continue to satisfy the1 recognised body requirements2 when considering any changes to its business or operations.

REC 4.2.4GRP

However, the FCA3 also expects that UK recognised bodies will keep it informed of all significant developments and of progress with their 2plans and operational initiatives, and will provide it with appropriate assurance that the recognised body requirements21 will continue to be satisfied.