Clive Adamson and Martin Wheatley both spoke at FSA’s asset management conference. They focused on the FCA approach to supervision of firms. FCA will categorise firms into four new supervision categories depending on their impact on consumers and the market. It plans to write to all firms in early 2013 to let them know their category. Supervisors will be allocated to firms with the greatest potential to cause risks to consumers or to market integrity. Some firms will not have dedicated supervisors. The supervision model will be based on three “pillars” – the Firm Systematic Framework (FSF), event-driven, and issues and products. What drives each pillar will depend on the firm, emerging issues and FCA’s research. Clive Adamson noted FSA and FCA will change the way Authorised Corporate Directors (ACDs) are authorised and supervised, following thematic work that showed some ACD firms do not understand the regulatory responsibilities the role entails. He also touched on product intervention powers. Martin Wheatley also spoke on product intervention, and additionally focused on the issues of charging and competition. (Source: Clive Adamson Speech at Asset Management Conference and Martin Wheatley Speech at Asset Management Conference)