The FCA’s reputation has taken a serious hit in the last few years with scandals, backlogs, low employee morale and even strike action. Its response is causing challenges for the industry as firms try to adjust to this new FCA.
Concerns are being voiced on the impact of the new approach on financial services and consumer choice, particularly at a time when the Government is setting many stalls in growth in financial services being a key factor to bring the UK out of its current economic crisis. In contrast, the FCA considers that its dramatic change in approach will benefit consumers and protect the sector.
So how can firms succeed in this new supervisory landscape?
Firms that are becoming most successful in dealing with the changes are those that have taken a step back and adopted a new approach internally – not just in terms of adapting the framework to all the new guidance and requirements, but also in the way they view regulatory compliance and the FCA within the firm and leadership, accepting the change in attitude and priorities.
Paying attention to the top priorities of the FCA is vital in prioritizing your own compliance activities. FCA priorities change, so firms need to be aware of what the FCA’s talking points are. Currently, customer risk assessments, sanctions processes and SAR frameworks are getting a lot of focus.
Consumer duty is another area that firms should begin considering very soon. Although officially firms have 12 months to implement this, there is a lot to cover and the FCA will be expecting to see firms beginning the process.
Other recent changes, such as Operational Resilience and Wind Down planning are also getting attention from the FCA, and many firms have yet to complete these to the appropriate level required by the Regulator.
Senior Management engagement and training is a hot topic. Firms should ensure that their senior management is kept up to date, not just with the changes in guidance, but also with the changes in attitude and expectations of the new FCA.
What help is there for e-money and payments firms?
Neopay has led the market in providing compliance support to e-money and payments firms for over 15 years and we are leading the way again. Our adapted Virtual Compliance Service offers a completely new strategy and approach for firms looking to regain control and mitigate the new regulatory risks.
With our unique support designed specifically for the issues you face, we can help you navigate this new landscape with confidence. For more information on how we can support your business, contact us here.