The Financial Conduct Authority has planned to require 20k regulated companies to begin the process of reporting on their financial resilience to protect customers.
This represents one of the steps the company took in its goal to minimise the harm, loss, and unsafety of customers and markets when the business falls.
As businesses and companies will always meet with the risk of failing, the new secondary objective will seek to operate a `zero failure` mode of development and administration plan. The second objective set by the FCA is to promote competitiveness in the industry.
One of the aims of the Financial Construct Authority is to ensure firms and enterprises meet their financial resource requirements, in order for the business to run seamlessly and securely for both the company and its customers. Even in the case of a failure, FCA’s priority is set on the clients and on a way to minimise the harm they might face.
The Financial Conduct Authority’s strategy
According to the FCA’s business plan for 2023/2024, the next year will introduce in the market a new `regulatory return`, which will require solo-regulated financial services and products firms to offer a base level of data and information on their financial resilience. The primary aims of the organisation were set in three main objectives: to secure an appropriate degree of protection for clients, to protect and enhance the integrity of the UK financial system, and to promote effective competition in the interest of customers and users.
The business plan presented some key uncertainties of its strategy as well, which included the interest rates and inflation, the risk that unemployment increases more than currently projected, the potential for further market volatility, as well as the potential for further declines in real household disposable incomes.
Furthermore, the FCA also mentioned that it will expand its efforts in tackling scams and online threads. The regulator is currently already running a `ScamSmart` user campaign across loan fees, pension, and investment fraud.
During the duration of the next year, the FCA aims to expand its ability to gather the needed evidence, analytics, and information in order to spot and track potentially fraudulent activities. The organisation also will develop its ability to search and have an overview of social media platforms. This will allow it to improve the way it identifies illegal financial promotions faster, more seamlessly, and in larger volumes. Moreover, it will also focus on working with `fin-fluencers` (popular social media accounts that give financial information, recommendations, and tips to viewers in order to educate them), for making sure that they understand clearly their regulatory obligations.
Source: The Paypers
