The FCA has launched an ambitious new 5-year strategy aimed at transforming the landscape of financial regulation in the UK.
This comprehensive plan is designed to enhance operational efficiency, support sustained economic growth, and deepen consumer trust in financial services.
At the core of the FCA’s strategy are four primary goals: becoming a smarter regulator by being predictable, purposeful, and proportionate; supporting economic growth through innovation and investment; aiding consumers in navigating their financial journeys with enhanced trust and innovative products; and intensifying efforts to combat financial crime, particularly targeting those misusing their regulatory status.
Ashley Alder, Chair of the FCA, emphasized the need for a shift in the financial services industry’s approach to risk. “We want to deepen trust in financial services and shift our collective attitude across financial services to risk. Too often the focus has been on the risks of a decision taken rather than the lost opportunity of taking none. We want to change that so we can spur growth and improve lives,” he said.
Nikhil Rathi, Chief Executive of the FCA, highlighted the strategic priorities and the regulator’s commitment to efficiency. “Our last strategy set high standards and bolstered our operational effectiveness. We are committed to going much further, delivering at pace to meet the scale of change we are facing over the next 5 years. This strategy sets out our priorities, how we’ll become more efficient and effective and make the choices that shape the financial system,” Rathi noted.
The strategy includes a proactive approach to supervision, adopting a less intensive stance towards compliant firms and reducing the bureaucratic burden of data reporting. It also outlines plans to digitize and streamline authorisation processes to accelerate applications and improve the quality of information received.
In addition to procedural enhancements, the FCA plans significant investments in technology and personnel to better manage the over 100,000 cases it reviews annually. This strategic focus will enable swifter and more assertive actions where necessary.
As part of the integration with the Payment Systems Regulator, the FCA will further develop the Open Banking initiatives and introduce Open Finance. This advancement is expected to facilitate more effective data sharing, unlocking product innovation, and delivering cost savings and better information for consumers.
This new strategy builds upon the achievements of the FCA’s previous 3-year strategy, which brought significant reforms including major updates to the listing regime, the introduction of the Consumer Duty for enhanced consumer protection, and more efficient firm authorisations.
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