The Financial Conduct Authority (FCA) has unveiled its Business Plan for 2024-25, setting forth an ambitious agenda for the final year of its 3-year strategy aimed at achieving better outcomes for consumers and markets.
Nikhil Rathi, Chief Executive of the FCA, expressed confidence in the progress made thus far, highlighting milestones such as the introduction of the Consumer Duty and proposed reforms to wholesale market regulation and the listing regime. Rathi emphasised the FCA’s commitment to supporting the financial sector’s role in the UK’s economic growth while safeguarding consumers and market integrity.
The FCA’s strategy revolves around 13 commitments focusing on preventing harm, setting higher standards, and promoting competition. Key priorities include:
- Consumer protection: The FCA will assess firms’ adherence to the high standards set by the Consumer Duty, ensuring long-term financial wellbeing through the Advice Guidance Boundary Review, and making sure pension products deliver value for money.
- UK competitiveness and growth: Efforts will be directed towards enhancing the attractiveness and accessibility of UK wholesale markets, facilitating firm investment and innovation, and streamlining the authorisation process for firms.
- Data-led regulation: The FCA aims to bolster its data-led approach by automating analytics tools, enabling faster detection and response to consumer harms, and collaborating with firms on the safe deployment of artificial intelligence.
The FCA emphasises that its proactive stance as a regulator has yielded tangible results. It gives the introduction of the Consumer Duty as an example, highlighting that this has prompted firms to adjust savings rates and fees, signalling a shift towards higher consumer protection standards. The FCA also mentions how it’s enhanced use of data has also resulted in faster identification and mitigation of potential harms, evidenced by the removal of misleading adverts and warnings issued to unauthorised entities.
The FCA highlights its flexibility in its efforts to keep the UK appealing for investment. Reforms to listing rules aim to attract a wider range of companies, boosting global competitiveness.
As the FCA continues its work, it reinforces its role as a regulator focused on results, assertiveness, and data usage.
To read the FCA’s Business Plan, click here.
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