Context
The FCA has six independent statutory panels. They represent the interests of consumers, regulated firms and markets and the FCA is required to consult with them on the impact of its work, policies and practices. The Panels play an important role in both advising and challenging the FCA, bringing a depth of experience, support and expertise that helps identify and remedy potential harm to users and markets. The FCA consider their views when it develops policy and implement interventions.
Key points to note and next actions
Each statutory panel publishes its own Annual Report, which explains that Panel’s activities for the year and comments on the FCA’s work. The FCA has responded to the key representations made by the Panels in their 2023/24 Annual Reports, grouping its responses into two sections:
- themes raised by all or most of the Panels; and
- specific issues raised by individual Panels
The themes raised across all the Panels’ reports were:
- Consumer Duty
- The Advice Guidance Boundary Review (AGBR)
- Pensions Value for Money
- Competitiveness and growth
- Environmental Social & Governance
- Artificial Intelligence regulation
- Big Tech regulation
The specific items raised by various of the Panels included:
- Financial Services Consumer Panel – general insurance-related issues about loaded premiums and consumer confusion as to whether they have received regulated advice when buying insurance products online.
- FCA Practitioner Panel – urged the FCA to focus on realistic reform, considering constraints and being prepared to deprioritise work as necessary, and encouraged the FCA to align critical third parties rules with other jurisdictions.
- Small Business Practitioner Panel – emphasised the importance of a robust cost benefit analysis for data requests of firms (considering the proportionality of such requests), and the sustainability of smaller firms in the advice sector. It highlighted the need for proportionate regulatory requirements and greater attention to economic and regulatory pressures that compromise firms’ sustainability.