REG - Financial Conduct - FCA launches 3 year strategy to improve outcomes

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07/04/2022 08:15

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RNS Number : 6050H  Financial Conduct Authority  07 April 2022

FCA launches three-year strategy

 to improve outcomes

 

·    Resources focused on outcomes to prevent serious harm, set higher
standards and promote competition

·    80 new roles created to shut down problem firms

 

The Financial Conduct Authority (FCA) has launched a new strategy
(https://www.fca.org.uk/about/how-we-work) to improve outcomes for consumers
and in markets throughout the UK.

As the FCA's remit is broad and growing, the three-year strategy prioritises
resources to prevent serious harm, set higher standards and promote
competition. The regulator will also, for the first time, hold itself
accountable against published outcomes and performance metrics
(https://www.fca.org.uk/data/fca-outcomes-metrics) .

 

A key focus of the strategy is shutting down problem firms, which do not meet
basic regulatory standards. The FCA is recruiting 80 employees to work on the
initiative, which will protect consumers from potential fraud, poor treatment
and create a better market.

 

In the development of the strategy, the FCA has calculated
(https://www.fca.org.uk/publication/corporate/positive-impact-2022.pdf) that
for every pound spent on its operations, consumers and small businesses
benefit by at least £11. The regulator has also considered the rising cost of
living, which could drive greater demand for credit products and lead
consumers to look for new ways to manage and make more of their money. The FCA
will continue to work closely with the UK Government and Bank of England in
response to the war in Ukraine.

 

The strategy builds on activities launched last July, when Nikhil Rathi, Chief
Executive of the Financial Conduct Authority, committed the regulator to
become more innovative, assertive and adaptive and transform the FCA into a
data-led platform that can face the threats and opportunities of the future.

 

This approach led to the FCA reforming the general insurance market, saving
consumers an expected £4.2bn over 10 years; leading the transition from
LIBOR; helping small businesses claim £1.3bn against business interruption
insurance cover; bringing its first ever criminal prosecution under anti-money
laundering regulations, with NatWest fined £264m
(https://www.fca.org.uk/news/press-releases/natwest-fined-264.8million-anti-money-laundering-failures)
; and protecting consumers from scams by preventing unauthorised firms from
advertising financial products on Google.

 

Nikhil Rathi said: "Our new strategy enables the FCA to respond more quickly
to the rapidly changing financial services sector. It will give us a
foundation to continuously improve for the benefit of our stakeholders, and
respond swiftly to economic and geopolitical developments."

 

Notes to Editors

 

·    The FCA's Business Plan
(https://www.fca.org.uk/publications/business-plans/2022-23) outlines the key
work we will do over the next 12 months.

·    The FCA has published the annual fees consultation paper
(https://www.fca.org.uk/publications/consultation-papers/cp22-7-fca-regulated-fees-levies-proposals-2022-23)
which sets out what fees the FCA will charge for the next financial year
(2022/23)

·    The Financial Conduct Authority (FCA) regulates the financial
services industry in the UK. Its role includes protecting consumers, keeping
the industry stable, and promoting healthy competition between financial
service providers. The FCA is based in London and has a presence in Edinburgh,
Cardiff and Belfast.

 

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