The Financial Conduct Authority (FCA) has published its Annual Report, outlining key improvements that it hopes will enhance the regulatory environment and promote economic growth.
The report highlights a marked improvement in the FCA’s authorisation services, now assessing 98% of cases within statutory deadlines, up from 89% in 2022/23. It states that this enhanced performance underscores the FCA’s commitment to making the UK an attractive destination for financial services, providing the regulatory framework necessary for firms to thrive.
As the regulatory body overseeing financial services, the FCA has also increased its focus on overseas firms wishing to operate in the UK. By offering pre-application support, the FCA says it is ensuring that new firms entering the UK market meet the stringent regulatory standards, making it easier for them to get off the ground. The FCA is also reporting that the recent overhaul of the UK’s listing rules, the largest in over three decades, further supports economic growth, enabling firms to more easily access the capital they need to expand.
Protecting consumers and tackling financial crime
According to its annual report, the FCA’s impact on consumer protection continues to grow. In 2023, it doubled the number of firm authorisation cancellations to 1,261, an indication of its efforts to clamp down on firms and individuals posing risks to consumers. The regulator intervened against 34 firms, a 68% increase from the previous year, demonstrating its resolve to protect consumers from financial harm.
The FCA highlights one of the standout achievements in the report, its action to ensure fair compensation for consumers. Over the past year, the FCA intervened with 100 lenders, ensuring support for borrowers facing financial difficulty. This intervention is expected to result in compensation of close to £60 million for approximately 270,000 customers. The Financial Services Compensation Scheme (FSCS) levy on the industry also hit a 10-year low, thanks to preventative measures taken by the FCA.
Strengthening financial crime enforcement
In 2023, the FCA charged 21 individuals with financial crime offences, the highest number recorded in a single year. In addition, the regulator secured 9 freezing orders, up from 3 in 2022, and restrained £21.1 million in assets from individuals under investigation.
Crypto regulation and Consumer Duty
In response to the growing popularity of cryptoassets, the FCA introduced new rules aimed at protecting UK consumers from misleading promotions. These regulations require promotions to be clear and transparent, helping consumers better understand the risks involved with cryptoassets.
The FCA highlights further safeguarding of consumer interests, through the implementation of the Consumer Duty regulations on 31 July 2023. More than 42,000 firms are now required to ensure good outcomes for consumers on both new and existing products, creating a higher standard of care within the industry.
Supporting innovation and future growth
The FCA states that it continues to champion innovation in the financial services sector, launching a permanent Digital Sandbox to support early-stage firms in developing new financial products. This initiative demonstrates the regulator’s commitment to fostering innovation while maintaining rigorous standards for consumer protection and market integrity.
For further details of the FCA’s progress, read the full FCA Annual Report here.
How Neopay can help
With the FCA’s improved performance and focus on ensuring a healthy, secure, and dynamic financial sector, Neopay is well-positioned to help businesses navigate this evolving regulatory landscape. As a leader in compliance solutions, Neopay offers comprehensive support to firms looking to meet these new and improved regulatory standards. From assisting with authorisation processes to providing auditing, advice and ongoing compliance support, Neopay is committed to helping firms thrive under the FCA’s robust framework.
To find out more about how we can help your business meet its regulatory requirements, contact our team here.
