The FCA’s chief executive Nikhil Rathi has warned authorised firms must use their permissions or risk losing them.

A speech published on the FCA’s website explains how Rathi sees the regulatory landscape evolving.

Big themes include what the UK’s departure from the European Union means for the rule book and applying new ESG proposals to capital markets.

The most striking line of the speech for advisers concerns what Rathi said about supervision.

“Our robust approach continues in our supervision of firms. If, once we do authorise a firm, we see they are not using their authorisation or indeed misusing it, we are not afraid to act quickly to remove their permissions,” he said.

“They will have to ‘use it or lose it’. We also anticipate in more cases, where there are significant risks, that we will need to supervise overseas firms, accessing the UK market more directly to make sure they meet our standards.”

Leaving the EU allows the FCA to design rules that better suit UK markets while ensuring appropriate safeguards and upholding high standards, Rathi added.

He pointed out next month it will bring forward a consultation seeking views on removing other barriers to companies listing.

This will increase opportunities for investors without compromising on safeguards.

A review led by former EU commissioner Lord Hill has urged an opening of the City’s listing floodgates.

The FCA is also consulting on several measures including an alternative approach to listing SPACs.

On ESG Rathi said: “Sustainable finance also demands a global response. The Chinese central bank and the US Treasury are leading a G20 Sustainable Finance Working Group, putting sustainable finance back at the heart of the G20 agenda under the Italian presidency.

“The new United States administration has confirmed that international cooperation in tackling climate change is a high priority. Our work in this area is world-leading and Sacha Sadan will shortly join us as our first director of ESG to help propel it forward.

“We were one of the first countries to introduce climate-related financial disclosure requirements for listed companies, in line with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).”

Yesterday, the FCA published new proposals on climate-related disclosure rules for listed companies and certain regulated firms.

It hopes that the proposed rules will help to make sure that the right information on climate-related risks and opportunities is available along the investment chain.