Financial Conduct Authority (FCA) UK Regulation 2025 – 400 Free Practice Questions to Pass the Exam

The requirement for the FCA to give a firm a reasonable period of notice when requesting specified information is grounded in the need for fairness and practical compliance. The term "reasonable period" allows flexibility, ensuring that firms have adequate time to collect and prepare the necessary information while considering the complexity of the request and the size of the firm.

This approach aligns with the principles of proportionality and the need to maintain effective oversight without causing undue disruption to the firm's operations. In contrast, specifying a fixed time frame, like two weeks, may not be suitable in every situation, as some firms may require more time due to their unique circumstances or the nature of the information requested.

Furthermore, the immediacy option does not consider the operational realities of data gathering and may lead to compliance challenges. Lastly, adhering to the firm's standard notification period is not consistent with the regulatory framework that the FCA oversees since the priorities and timeframes can vary significantly across different firms and contexts. The emphasis on a reasonable period ensures balanced regulation that takes into account both the regulatory objectives and the operational capabilities of regulated firms.