Context
In its Business Plan for 2024-25, the FCA has set out a programme of work for the final year of its 3-year strategy. The planned programme of work builds on progress made over recent years to become a “more outcomes-based, assertive and data-led regulator”.
The FCA will continue to deliver the 13 commitments in its strategy, which focuses on preventing serious harm, setting higher standards and promoting competition. Specific issues it will prioritise include:
- protecting consumers by testing if firms are meeting the Consumer Duty;
- contributing to UK competitiveness and growth by continuing to make it quicker and easier for firms to apply for authorisation (?!); and
- building on the significant progress already made to become a data-led regulator by:
- automating more of its analytics tools to help detect and respond to consumer harms faster; and
- working with firms on the safe deployment of artificial intelligence.
Key points to note and next actions
FCA focus for 2024/25:
Protecting consumers: The FCA will continue to test higher standards through embedding the Consumer Duty.
Ensuring market integrity: The FCA will continue to invest in its data and technology to support rigorous market oversight.
Promoting effective competition: The FCA will continue to promote competition and innovation to deliver good outcomes for consumers and fair value outcomes under the Consumer Duty.
The secondary international competitiveness and growth objective: The FCA will continue to make it quicker and easier for firms and people to apply for authorisation and will strengthen its data collection processes to reduce the burden on businesses.
People: The FCA’s workforce will be more than 5,000 by the end of March 2024.
Operational resilience: The FCA will continue to invest in operational effectiveness and resilience.
The FCA’s commitments:
The FCA will continue to deliver its 13 public commitments, focusing on three in particular:
- reducing and preventing financial crime
- putting consumers’ needs first
- strengthening the UK’s position in global wholesale markets
FCA outcomes and metrics:
An FCA web page has been published setting out:
- how the FCA is being clear about how it is accountable for its progress;
- an explanation of its ‘topline’ and ‘commitment’ outcomes; and
- how it will measure progress against its metrics.
The FCA’s approach to supervision:
The FCA has published a web page setting out its approach to supervision, explaining how the FCA carries out its regulatory oversight. It is designed to help firms, consumers and markets understand how the FCA works, and fulfils its accountability to Parliament and to the public.
The FCA’s approach to consumers:
The FCA has also published a new web page explaining that its approach to consumers sets out how is uses its powers and tools to protect consumers of financial services, in line with its consumer protection objective.
UKGI Bulletin 359 on the UKGI Compliance Manual sets out more details.