Context
The FCA has published the latest Regulatory Initiatives Grid which sets out the planned regulatory initiatives for the next 24 months. Published alongside this is their interactive dashboard.
Key points to note
There is nothing from the FCA in the specific section on insurance as the GI Pricing Practices has been implemented and removed from the Grid. However, there are numerous multi-sector initiatives, which are set out below:
Diversity & Inclusion
The response to last year’s Discussion Paper, DP21/2, “Diversity and inclusion in the financial sector – working together to drive change” has been pushed back. A Consultation Paper is now expected in Q3 2022 (previously H1 2022) and a Policy Statement in 2023 (previously H2 2022).
Reviewing the Appointed Representatives Regime
The FCA Policy Statement in response to the CP is now expected Q3 2022 (previously Q2 2022)
Transforming Data Collection
There is a comment: “We are focussing upon the integration of the financial resilience survey, along with data standards and how we change the way we communicate with firms in the design of data collections.”
Operational Resilience
In scope firms (Enhanced firms under SM&CR) should have operationalised the policy framework by the 31st of March 2022 and need to show by 31st of March 2025 that they can remain within their impact tolerances for each important business service.
Incident and Outsourcing and Third Party Reporting.
This is a new entry in this area of the Grid; the purpose of this policy would be to:
- Introduce clarity regarding the information firms should submit when operational incidents occur.
- Collect certain information on firms’ outsourcing and third party arrangements in order to manage the risks they may present to the PRA/FCA’s objectives, including resilience, concentration and competition risks.
- This project has been chosen as a phase two use case as part of the Transforming Data Collection Programme.
- A Consultation Paper is planned for Q2/Q3 2023.
Consumer Duty
The Policy Statement is due Q3 2022 with the rules due to be implemented by Q2 2023.
HMT/ FCA – Regulation of Buy Now Pay Later (BNPL): bringing unregulated, interest-free BNPL, or Deferred Payment Credit, products into FCA regulation.
- HMT published a consultation on the regulation of BNPL on 21st of October 2021, with a Government response to be published in Spring 2022.
- Following finalisation of the Government’s approach, secondary legislation will be laid in 2023 to bring BNPL into the regulatory perimeter.
- The FCA will subsequently run a consultation on the details of the regime.
Next actions
We will provide more information on the individual topics within this item as and when it becomes available.