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FCA publishes an update in relation to the Regulatory Initiatives Grid

Jul 20, 2023 | FCA

Link(s):Regulatory Initiatives Grid – Update from the co-chairs July 2023 (fca.org.uk)

Context

The FCA has updated its web page in relation to the Regulatory Initiatives Grid, and has published a brief update from the co-Chairs Nikhil Rathi (FCA CEO) and Sam Woods (Deputy Governor, Prudential Regulation, at the Bank of England).  The Grid was last updated in February this year, and was accompanied by an interactive dashboard and an Excel spreadsheet to help users interact with the underlying data. This was covered in our weekly update of 3rd March 2023, and the next Grid will be published in Q4 2023.

Key points to note

The brief update is provided following the Royal Assent of the Financial Services and Markets Act 2023 (FSMA 2023 or the Act). Given the Act’s significance for the financial services regulatory landscape, the briefing covers the most significant updates and developments since the February 2023 Grid.

  • The Royal Assent of FSMA 2023: a significant milestone for regulation, bringing about changes in how the FCA operates  The new statutory duty requiring the FCA, FOS and FSCS to co-operate on issues with wider implications will enhance regulatory cooperation between these bodies.
  • Reforming the regulatory framework: FSMA 2023 provides a framework to repeal retained EU law (REUL) relating to financial services, and where appropriate to replace it with new legislation or regulator rules to build a regulatory framework which is tailored to the UK.  The government recently published a delivery plan, ‘Building a Smarter Financial Services Regulatory Framework for the UK’.
  • Other significant developments outside the Act: these will be reflected in full in the Q4 2023 Grid. For example, joint with the Treasury, the FCA has committed to undertaking a holistic review of the boundary between advice and guidance.  The Treasury has published the updated Green Finance Strategy 2023 in March, with the aim of ensuring the UK market is well positioned to support the transition to net zero.  In June the FCA rapidly published final rules to support the implementation of the Government’s Mortgage Charter.
  • Next steps: “Many of the initiatives on the Grid will ultimately lower the regulatory burden on firms in the future, or benefit consumers…”.  “Many changes will ultimately simplify the regulatory model, reduce burdens on firms and protect consumers.”  “Overall, the Act represents a significant and positive step. The Grid will be an important platform for keeping stakeholders updated on the delivery of FSMA 2023…”.

Next actions

None – for information and awareness.