Context
Nikhil Rathi has introduced his first Business Plan as the FCA’s Chief Executive, but has set out in this webinar how he sees the FCA’s role emerging and transforming in a post-Covid, post-Brexit and increasingly post-carbon economy. He explained how the FCA will keep pace with technological change that is shifting the relationship between consumers and firms, how it will adjust to economic challenges and a growing remit. He set out what he sees as the forces that are reshaping financial services:
- the rise in vulnerability coming out of the pandemic
- rapid technological change
- rewriting the UK regulatory framework after Brexit
- transition to a net zero economy.
These forces in turn are helping to shape the transformation of the Regulator.
Key points to note
Highlights of the speech included:
- Being more innovative: data is the lifeblood of a modern regulator, so everything the FCA does depends on the information that it collects and how that information is used.
- Being more assertive: acting decisively and being clear about what the FCA is doing, why it’s doing it and where the limitations lie; being a Regulator that is tough, assertive, confident, decisive and agile. The FCA must build a culture that embraces risk, is more curious and acts decisively to tackle harmful behaviour as soon as the FCA suspects it. Firms should expect the FCA to be even more rigorous on upholding high standards – especially on governance, conflicts of interest and conduct, including considering diversity and inclusion as regulatory issues.
- Being more adaptive: working flexibly to respond to ever-changing challenges. The FCA must continue to become a forward-looking, proactive regulator.
- Measuring success: The FCA we will be clearer on what outcomes matter and what metrics it uses to measure them. It is this year setting seven key strategic overarching outcomes and testing several metrics. Specific metrics include:
- bringing down the FSCS levy over a multiyear timeframe as well as the value and volume of FSCS claims
- refusal, withdrawal and rejection rates at the gateway
- complaints about newly authorised firms
- increasing the number of firms whose permissions we remove either permanently or temporarily
- reducing the number and proportion of calls to the FCA that we need to redirect
- increasing effectiveness of our ScamSmart campaigns
- market cleanliness measures
Next actions
None – provided for information and awareness