The FCA has released its new business strategy for the next 12 months.
Focusing on results rather than being driven by processes
The FCA is taking a bold position. It is clear in its business plan that firms seeking authorisation will face tougher questions and scrutiny from case handlers, and those being supervised should expect to receive more information requests to enable data-driven action by the FCA.
The FCA commitments focus on three areas:
1. Reducing and preventing serious harm
More resources are being allocated to preventing/catching unscrupulous firms. The FCA will be hiring more employees to tackle problems with firms already authorised and/or those operating online which are harder to catch.
The regulator will engage more with tech platforms to police financial promotions - the FCA has found great success in working with Google to prevent unauthorised financial promotions. We should expect to see more tech platforms follow in their footsteps.
2. Setting and testing higher standards
The FCA will focus its attention on tackling firms that have lower standards and fail to do the right thing. The FCA Consumer Duty will ensure every firm considers the actual impact of their products and services. The aim is to only sell products and services that are suitable for customers and provide good standards of customer service.
3. Promoting competition and positive change
For tech innovative firms, the FCA is introducing the ‘scale box’ to support innovation and provide a tailored service to help get you to market. This is their next step from the previously named ‘regulatory sandbox’. The FCA acknowledges that the world is changing and technology is the new future. The regulator will work with futuristic companies to test out their solutions in a compliant and competitive environment.
If you would like to hear more about how the FCA’s business plan and priorities affect your firm, please get in touch with a MEMA Consultant today