Consumer resilience and becoming a more efficient and effective regulator are two of the key aims of the Financial Conduct Authority’s (FCA) latest five-year plan.
The regulator also emphasised the importance of building trust throughout the industry and with consumers and its desire to “enable a fair and thriving” financial services market.
Its plan was launched by FCA chief operating officer Emily Shepperd (pictured) who noted the FCA was extending its approach to five years rather than three years as it takes time to deliver and cement change.
“The FCA wants to enable a fair and thriving financial services market for the good of consumers and the economy,” she said.
“To achieve this, a key cornerstone of our strategy will be growing trust. Trust in us as a regulator. Trust between us and those we regulate.
“And consumer trust in the financial services they rely on.”
The regulator has four themes guiding the five-year plan until 2030:
- Becoming a more efficient and effective regulator.
- Tackling financial crime.
- Building consumer resilience.
- Supporting economic growth and innovation.
It said these were supported by its approaches to technology, data and how the regulator develops its workforce to match the needs of the future.
The strategy was launched the same week as a report by MPs on the All Party Parliamentary Group for Investment, Fraud and Fairer Financial Services accused the regulator of being “incompetent” and failing to perform its functions, calling for it to be overhauled.
‘Do the day job better’
The FCA admitted that it was consistently being told by industry CEOs that it needs to be “more efficient, more effective and more proportionate”.
“Quite simply to do the day job better,” continued Shepperd.
“We want to increase value for money and reduce regulatory cost where we can – recognising your feedback that industry is not an open cheque book.
“Through the practitioner panel survey and various fora you’ve told us that you want us to streamline data requests.
“You’ve told us that you want us to be more predictable, pragmatic and proportionate in the way that we operate. We hear you, and we’re addressing all of these under this theme.
“We are also rethinking how we supervise, ensuring firms get the right supervisory experience,” she added.
Consumer resilience
The FCA also wants to ensure consumers have access to, and the confidence to use, appropriate products and services to support their financial wellbeing through their whole lives.
It said this would involve building trust in the services they rely on, with the advice-guidance boundary review playing a key role here.
“The Consumer Duty places the onus on firms to ensure that consumers are empowered to understand products on offer, to help them make informed decisions on what is appropriate,” said Shepperd.
Shepperd highlighted the case of those financially excluded people, noting provisions such as basic bank accounts and access to cash, but added: “for others, it may be about boosting their savings and improving their resilience”.
“We are working to refine the line between advice and guidance, making the distinction clearer to help consumers understand their choices,” she continued.
“Ultimately, we are seeking to build trust through greater consumer understanding – in a way that is mutually beneficial.”