The FCA has released its Business Plan for the 2024-25 period, marking a key phase in the authority’s pursuit of excellence within the realm of financial regulation.
Under the leadership of Nikhil Rathi, Chief Executive of the FCA, the authority has made noteworthy strides towards realising the ambitious goals outlined in its strategic vision initiated two years prior.
The introduction of the Consumer Duty stands as a testament to the FCA’s commitment to elevating standards of consumer protection, setting a new benchmark for the financial industry. In addition, the FCA has proposed sweeping reforms to wholesale market regulation and the listing regime, positioning the UK as a competitive hub on the global stage.
Rathi emphasised the FCA’s dedication, stating, “We remain resolute in supporting the vital role the financial sector plays in the UK’s long-term economic growth, embracing the potential benefits that technology presents both for us and the firms we regulate, while also continuing to protect consumers and ensure market integrity.”
Central to the FCA’s agenda for the coming year are thirteen strategic commitments, with a particular focus on preventing harm, enhancing industry standards, and nurturing competition.
Key initiatives include rigorous testing of firms’ adherence to the Consumer Duty, improving financial wellbeing through the Advice Guidance Boundary Review, ensuring the value of pension products, and enhancing the attractiveness of UK wholesale markets. Moreover, the FCA aims to bolster innovation and expedite the authorisation process for firms, underpinning the UK’s economic growth and competitiveness.
The transition towards a more outcomes-based, assertive, and data-led regulatory approach has already yielded substantial progress. The Consumer Duty, by mandating clearer and higher consumer protection standards, has spurred immediate adjustments in savings rates and fees by firms.
Leveraging data analytics has enabled the FCA to swiftly identify and mitigate consumer harms, evident in the removal of over 10,000 misleading adverts and issuance of thousands of warnings against unauthorised entities in 2023 alone. Furthermore, the authority’s proactive stance on regulation and process enhancement has made the UK a more attractive investment destination, underscored by a significant overhaul of the listing regime aimed at diversifying the UK market’s global appeal.
As the FCA embarks on the final year of its transformative strategy, its commitment to fostering a robust, competitive, and consumer-centric financial ecosystem remains unwavering. The comprehensive suite of initiatives outlined in its Business Plan for 2024-25 heralds a new era of financial regulation, one that promises to safeguard consumer interests while propelling the UK’s financial sector to new heights.
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