The Financial Conduct Authority (FCA) has unveiled its strategic vision for 2025 to 2030, emphasising four pivotal outcomes: becoming a smarter regulator, supporting economic growth and innovation, enhancing consumer protection, and intensifying the fight against financial crime. These objectives are designed to foster a robust, innovative, and trustworthy financial environment in the UK.
1. Becoming a Smarter Regulator
The FCA plans to transform into a more agile and efficient regulator by leveraging advanced technologies and streamlining regulatory processes. This includes adopting data analytics and artificial intelligence (AI) to enhance decision-making and reduce unnecessary burdens on firms. By focusing on outcomes-based regulation, the FCA seeks to respond swiftly to market changes and emerging risks, ensuring a more dynamic and responsive regulatory framework. Additionally, the FCA aims to be more selective in its data requests and utilise AI for targeted investigations, thereby optimising resource allocation and effectiveness.
2. Supporting Economic Growth and Innovation
In alignment with governmental priorities, the FCA is committed to fostering an environment conducive to economic growth and innovation. This involves reducing regulatory barriers for startups and established firms, promoting competition, and supporting the adoption of new technologies. By facilitating innovation, the FCA aims to enhance the UK’s position as a global financial hub. Notably, the FCA has pledged to assist firms in testing AI and machine learning tools, extending support to asset tokenisation initiatives. Additionally, plans are underway to establish offices in the US and Asia-Pacific to strengthen international regulatory cooperation.
3 .Enhancing Consumer Protection
Protecting consumers remains at the heart of the FCA’s strategy. The authority plans to implement measures that ensure financial products and services are transparent, fair, and tailored to consumer needs. This includes enforcing stricter guidelines on firms to provide clear information, preventing mis-selling, and ensuring that consumers have access to redress mechanisms. By prioritising consumer interests, the FCA aims to build trust and confidence in the financial system. The strategy aligns closely with the Consumer Duty under PRIN 2A of the FCA Handbook, which sets higher standards of consumer protection and requires firms to deliver good outcomes for retail customers.
Furthermore, the FCA intends to encourage retail investors to take more informed risks with their savings to address challenges posed by an ageing population, thereby promoting better financial outcomes for consumers.
4. Intensifying the Fight Against Financial Crime
The FCA is set to bolster its efforts in combating financial crime by enhancing its surveillance capabilities and collaborating more closely with domestic and international partners. This includes utilising advanced technologies to detect and prevent fraudulent activities, money laundering, and other illicit financial practices. In accordance with SYSC 6.1.1R of the FCA Handbook, firms are expected to maintain effective systems and controls to counter financial crime. By adopting a proactive approach, the FCA aims to safeguard the integrity of the UK’s financial markets and protect consumers from financial harm. Emphasising a heavy focus on financial crime and fraud is seen as a key element in boosting consumer trust in financial markets and the regulator itself.
Through these strategic outcomes, the FCA is positioning itself to effectively navigate the evolving financial landscape, ensuring that the UK’s financial markets remain competitive, innovative, and secure.
How Complyport Can Help
As the FCA continues its transformation into a data-driven, forward-looking regulator, it is crucial for regulated firms to anticipate and adapt to evolving expectations. Whether it’s implementing robust financial crime controls, aligning with Consumer Duty requirements, or navigating emerging technologies like AI, Complyport is here to help.
Our expert consultants can support your firm with:
- FCA regulatory gap analysis and remediation
- Governance reviews aligned with the FCA’s new priorities
- Compliance frameworks for innovation and AI tools
- Preparation for increased scrutiny under Consumer Duty
Get in Touch
Contact Complyport today to book a meeting with one of our Subject Matter Experts and ensure your compliance strategy is aligned with the FCA’s future vision.
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