The Financial Conduct Authority (FCA) today sets out an ambitious program of work for the final year of its three-year strategy to achieve better outcomes for consumers and markets in its 2024-25 business plan. did.
Nikhil Rati, CEO of FCA, said: “We have already made significant progress in delivering on the bold vision we set out in our strategy two years ago, including introducing an innovative consumer tax and proposing the most far-reaching reforms to wholesale market regulation and listing systems. We have achieved this goal several decades later.
“We remain firmly committed to supporting the important role that the financial sector plays in the UK’s long-term economic growth, embracing the potential benefits that technology can bring to both us and the businesses we regulate. We will continue to protect consumers and ensure the integrity of our markets.”
The FCA will continue to deliver on the strategy's 13 commitments, which focus on preventing serious harm, setting higher standards and promoting competition. Specific issues that will be prioritized include:
- We protect consumers by testing whether businesses meet the high standards set by Consumer Duty, we support people's long-term financial wellbeing through a review of advice guidance boundaries, and we ensure that pension products are We guarantee that you will get the value you deserve.
- Improving the attractiveness and reach of the UK wholesale market, supporting businesses to invest, innovate and expand through our innovation services, and continuing to make it faster and easier for businesses to apply for licenses, thereby contributing to the UK's competitiveness and growth. Contribute.
- To become a world-class, data-driven regulator by automating analytical tools to detect and respond to consumer harm faster and working with businesses to safely deploy artificial intelligence. We will build on the great progress already made.
The planned work program builds on the progress made in recent years to become a more results-based, proactive and data-driven regulator.
The introduction of consumer tax marks a major shift in setting higher and clearer standards of consumer protection and is already leading to changes in savings rates and fees by businesses.
The FCA is making better use of data to spot and stop harm faster, and is tougher on companies that are likely to cause harm. In 2023, we removed more than 10,000 potentially misleading ads and sent out 2,243 warnings about unauthorized companies and individuals. The number of business licenses revoked for not meeting minimum standards also more than doubled from the previous year.
We have adapted our rules and improved our processes to ensure the UK remains an attractive investment destination. This includes proposing the most far-reaching package of reforms to the listing system in decades to encourage more companies to list in the UK and compete on the world stage.
Commenting on the FCA Business Plan, Simon Turner, UK Financial Services Regulation Partner at EY, said: “The FCA’s new business plan, which marks the final year of its three-year strategy, today sets out an extraordinary commitment to safeguarding the UK financial services sector, supporting and protecting consumers, and delivering on the goals set. What has been reinforced this year is an increased focus on holding companies accountable across all sectors.
“Alongside the recently announced strategic approach to law enforcement, the focus on multi-company efforts, cross-market investigations, and supervisory interactions with individual companies will help improve consumer mandates. It highlights the FCA's intention to use data to better identify, understand and incorporate principles and actions to address key issues facing the industry.
“Annual funding requirements are set to increase by 10.7% year-on-year, and it is positive that £11.3m will be allocated to continue the implementation of the Treasury's Smarter Regulatory Framework (SRF). A further £5.3m is set to be added to consumer tax, with continued work and enforcement action by multiple businesses a priority, despite just four months until the second final enforcement deadline It has been suggested that
“This year’s Business Plan sends a clear message: The FCA will be a data-driven and action-focused regulator next year, and now more than ever, businesses know there is no room for non-compliance. There is a need to.”
Commenting on FCA's business plan: Imogen Makin WilmerHale's lawyer said:
“The FCA remains committed to reducing and preventing financial crime, and our commitment to putting consumers’ needs first (with a particular focus on pensions) means that we will need proactive oversight to address these topics. This means that enforcement litigation is likely to continue to occur.”
“In terms of combating financial crime, the FCA has vowed to increase investment in systems in 2024/25 “to use intelligence and data more effectively in financial crime activities,” with the amount likely to increase. There is sex. As a result, early intervention is possible, such as through changes to permits or the use of supervisory notices.
“Furthermore, the FCA’s stated intention to take proactive action against market abuse will mean that the exercise of its supervisory and enforcement powers in this area in particular is likely to increase. We proactively review and stress test our financial crime prevention systems and controls on a regular basis to identify issues at an early stage, strengthen and update our systems and controls accordingly, and implement any necessary corrections. Must take into account regulatory and legal developments.
“Finally, the Prime Minister said during his time as Prime Minister that he wanted to make the UK a crypto hub, and it is good to see the FCA moving towards a proportionate market abuse regime for crypto assets.”
I also commented on the project. David Brooks, head of policy at Broadstone, a leading independent consultancy, said: Said:
“The FCA is quite rightly focused on outcomes for savers and ensuring they get good value for money from financial service providers.
“We are really pleased that there will be increased scrutiny of the scourge of unscrupulous advisers and advertising that misleads people and defrauds them of their hard-earned pension savings. The Trustees we work with ensure that our members can enter the world of financial advice with confidence as they prepare for their future, and that these professionals provide them with the best possible care. I hope you will. ”
