The FCA’s Approach

The FCA’s adheres to a number of key supervisory principles which guide their operational objectives, as described in section 2 (to protect consumers, enhance market integrity and promote competition), and form the basis of their supervisory approach. Their supervisory principles are complementary to the Principles for Businesses which outline their expectations of firms and can be described as follows:

• Forward looking
• Focused on strategy and business models
• Focused on culture and governance
• Focused on individual as we as firm accountability
• Proportionate and risk-based
• Two-way communication
• Co-ordinated
• Put right systematic harm that has occurred and stop it happening again

The FCA considers Paragon to present a low risk to its ability to achieve its objectives and as such the FCA has not appointed a dedicated relationship manager to supervise Paragon’s activities.

Paragon is categorised as a flexible portfolio firm and is therefore subject to a market-focused approach to supervision which includes market–based activities such as programmes of communication, engagement and education. Paragon is also categorised as P3 which means we are prudentially non-significant and our failure, even if disorderly, is unlikely to have significant impact.