In the wake of constant threats of imminent financial scams and scandals, the implementation of an effective enforcement programme is increasingly an ongoing challenge for regulators around the world. Whilst, some regulators adopt an enforcement-led approach, which is characterized by the specific allotment of resources to enforcement activities, others are more geared towards work done in 'prevention' rather than ex-post enforcement actions.
As the integrated regulator for the financial services sector other than banking, and global business, the FCS's regulatory objectives as mandated under the FSA are as follows:
In delivering its regulatory objectives, FCS champions a prevention model as it seeks to prevent and/or identify problematic issues early in the regulatory process.
The Prevention Model
As a risk based regulator, throughout its work, the FCS prioritises its resources in the areas which pose the biggest threat to its regulatory objectives. Enforcement is one of a number of regulatory tools available to the FCS as part of its preventive approach. The FCS's approach to the use of its enforcement powers plays an important role in the pursuit of its regulatory objectives.