On 7th April, the FCA published its three-year Strategy, setting out how it will achieve better outcomes for consumers and in markets throughout the UK, along with its Business Plan for 2022/23.
We will be writing more on this in the coming days, but let's start by saying that the FCA plans, over the next three years, to focus on achieving 13 commitments which relate to:
- Reducing and preventing serious harm – the FCA is recruiting 80 additional employees to focus on shutting down problem firms that do not meet basic regulatory standards. It also plans to do more to keep criminals out of financial services.
- Setting and testing higher standards – the new Consumer Duty will underpin a closer focus on outcomes, as firms will have to take into account the actual impact that their products and services have on their customers. The FCA plans to improve standards in markets like consumer investments, and enabling finance to play a key role in the transition to net zero by promoting transparency and building trust and integrity in ESG-labelled products.
- Promoting competition and positive change – the FCA is helping to transfer EU legislation into FCA rules as part of the Government’s Future Regulatory Framework, using opportunities to tailor its rules for UK markets, and working to maintain and improve the UK’s position in global wholesale markets. The FCA is supporting innovation and competition, building on its regulatory sandbox which allows firms to test innovative propositions in the market. And it's planning on shaping digital markets with Government and other regulators.
"In Our Strategy 2022 to 2025, we set out our vision and ambitions for the next three years. We also set out the consistent topline outcomes we expect from financial services and the key strategic areas we’ll be focusing on."