The regulator's Threshold Conditions Team (TCT) deals mainly with small regulated firms that are not meeting the FSA's minimum requirements (or "threshold conditions"). The TCT generally takes action against such firms when co-operation has not been forthcoming.
In the year to 30 June 2004:
Approximately 50 firms addressed breaches of the threshold conditions when presented by supervisors with the prospect of a referral to the TCT .
59 other firms who were referred to the TCT took remedial steps when faced with imminent enforcement action.
A further 19 firms had their permission to conduct investment business cancelled for breaches of the threshold conditions, the action being taken in support of the FSA’s consumer protection and market confidence objectives; and
Two individuals with convictions for financial crime were prohibited.
Clive Briault, managing director of the Retail Markets Business Unit, said: "Public confidence in the financial system relies partly on authorised firms meeting the FSA's minimum standards in terms of having adequate resources and being fit and proper to conduct investment business, whatever their size.
"We aim to work with firms to help them maintain the required standards, but the action taken over the last 12 months should send a message to all small businesses regulated by the FSA that we will not allow firms which fall significantly below the minimum standards to remain authorised."
