ICB attended the latest FCA webinar, alongside other professional body supervisors (PBSs), to hear more about how the project is progressing and to ensure the views of our members continue to be represented throughout the process.
The key message for ICB members is that nothing changes today. ICB remains your AML supervisor, and you should continue to comply with all existing ICB AML requirements.
Where is the project now?
The FCA is still in the design phase of the programme.
The Government has confirmed its intention for the FCA to become the UK's single AML supervisor for professional services, but the legislation needed to make this happen is still progressing through Parliament.
The FCA stressed that it is not yet able to make decisions on many of the detailed questions firms are asking, such as future supervision arrangements, fees or reporting requirements. Those decisions will be made once the legislation is in place.
The webinar gave a clearer picture of the FCA's priorities and how it is approaching the transition.
This will be a phased programme rather than an overnight change.
The FCA's current roadmap suggests that the first professional body supervisors will begin transitioning during 2027, with further phases continuing into 2028. The programme will then continue to evolve beyond that.
Reducing unnecessary burden
One of the strongest messages from the webinar was that the FCA wants to avoid creating unnecessary duplication for firms.
These are all points that ICB has consistently raised on behalf of members.
Recognising the needs of small firms
The FCA also acknowledged that many regulated businesses are sole practitioners or small firms, and that AML requirements can place a significant administrative burden on them.
Its research found that firms want supervision that reflects the actual level of risk, rather than a one-size-fits-all approach.
This is particularly important for ICB members, the vast majority of whom are small practices supporting local businesses.
Keeping the best parts of the current system
The FCA shared research showing that firms value many aspects of the support currently provided by professional body supervisors, including:
ICB will continue to emphasise the importance of retaining these strengths as the new model develops.
The FCA will continue working with professional body supervisors over the coming months to design the future supervisory model.
This includes further user research, testing proposed processes and agreeing how information will be shared during the transition.
ICB will continue to take part in these discussions and ensure that the interests of bookkeepers and small practices are properly represented.
For now, nothing changes.