Authorities are taking a data-centric approach to protecting consumers and combating fraud and financial abuse.
of Financial Conduct Authority The FCA has published its 2024-2025 Business Plan, which focuses on combating financial crime, targeting fraud and maintaining good operating standards for businesses. Officials also cited the challenges of a turbulent macroeconomic environment and rising interest rates, as well as persistently high inflation, which remains above the Bank of England's 2% target.
As the FCA enters the final year of its three-year strategy, its secondary objectives are to protect consumers, ensure the integrity of markets, promote effective competition and strengthen the international competitiveness of the UK economy.
FCA CEO Nikhil Rati said in a statement: “We remain steadfast in our support of the important role that the financial sector plays in the UK’s long-term economic growth and will continue to support it, embracing the potential benefits that technology can bring to both us and the businesses we regulate.” This is to protect consumers and ensure the integrity of the market. ”
The FCA will work with regulatory partners to ensure pension products offer 'value for money' and will focus on developing AI capabilities to prevent fraud and improve consumer support. The aim is to protect consumers.
Additionally, the agency noted that it will publish an Economic Crime Plan and Fraud Strategy in 2023 as part of its aim to combat financial crime. The FCA added that it would continue to use a “data-driven approach” to identify and crack down on fraud, as well as strengthening traditional accounting sector standards.
Last year, the agency said it removed more than 10,000 potentially misleading ads and issued 2,243 warnings to unauthorized organizations and individuals. The FCA also canceled twice as many business licenses in 2023 as in the previous year due to insufficient minimum standards.
wilmer hale advisor Imogen Makin Commenting on the proposal in a statement, he said: “The FCA’s continued focus on reducing and preventing financial crime and putting consumers’ needs first (with a particular focus on pensions) means that active oversight and regulation will continue. enforcement cases that address these topics. ”
Mr Makin added: “In terms of combating financial crime, the FCA has vowed to increase investment in systems from 2024 to 2025 to 'make better use of intelligence and data in financial crime activities'. “There is a possibility that investment will continue to increase in the future,” he added. As a result, the amount of early intervention, such as through permit variations and the use of supervisory notices, will increase. ”
The agency also mentioned strategies to address market abuse using improved analytical capabilities. The FCA also said it would support the development of market abuse regimes for crypto assets and Private Intermittent Securities Exchange System (PISCES) facilities.
Makin added: “Furthermore, the FCA's stated intention to take aggressive action against market abuse means that the exercise of its supervisory and enforcement powers in this area in particular is likely to increase. “Let’s do it,” he continued. Firms are aware that they should proactively review and stress test their financial crime prevention systems and controls on a regular basis to identify issues at an early stage, strengthen and update systems and controls accordingly, and A fix needs to be implemented. Regulatory and legal developments need to be taken into account. ”
“Finally, the Prime Minister said during his time as Prime Minister that he wanted to make the UK a cryptocurrency hub, and it is good to see the FCA moving towards a proportionate market abuse regime for crypto assets,” Makin said.
Last month, the FCA announced a new approach to enforcement cases aimed at speeding up the process and increasing public awareness of the FCA's actions.
