The Financial Conduct Authority (FCA) has released its Business Plan 2023/24, focusing on consumer needs, preparing for the future, strengthening the UK’s position in global wholesale markets and financial crime prevention.
In regard to consumer needs, the FCA will continue to advocate for borrowers in financial difficulty, ensuring that firms are providing the necessary assistance. The Consumer Duty will be implemented in July, with higher and clearer standards of consumer protection put in place to encourage innovation, drive competition and ultimately simplify regulation.
The FCA is investing more than £12 million to prepare for the Future Regulatory Framework (FRF), outlined in December 2022 to align with the government’s goals for the UK financial services sector. In order to support innovative and high-growth firms, the association will maintain its sandbox, early- and high-growth oversight offerings, along with establishing new cost-benefit analysis panels.
To strengthen the UK’s position in global wholesale markets, proposals to reform the listing regime will continue in order to attract more global firms and spark competition in markets. As part of its investment in the FRF and Edinburgh Reforms, the FCA is looking into potential improvements around asset management regulation and consulting on consolidated tapes.
The FCA states that it “continues to look for innovative ways of reducing and preventing financial crime.” Initiatives include a strengthened authorisation process, improved regulated firm assessments and increasing the headcount of those investigating and prosecuting offenders. Machine learning is also being employed to identify scam sites.
The 2023/24 business plan is in line with the FCA’s broader three-year strategy, which began in 2022.
Commenting on the plan, Nikhil Rathi, chief executive of the FCA, says: “We set out a bold vision last year of what we wanted the FCA to be, and we are well underway to achieving our objectives thanks to our talented colleagues and the better use of technology and data across our organisation.”
Santiago Ximénez, director general at BME Market Data, part of SIX, adds: “The FCA’s push to improve the quality and accessibility of market data with regards to a consolidated tape is very much welcome. There is no doubt supplying reliable and high-quality market data is paramount to delivering a consolidated tape efficiently, and to the highest operational standards that offer a complete picture of the liquidity in the UK.”
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