The FCA's strategy for 2025-2030 is here With governments around the world looking to promote the growth of their economies, financial services regulators in the US, Europe and elsewhere are looking at ways to support growth by encouraging greater innovation, bolstering competitiveness and reducing “burdensome” regulation. Today, it was the FCA’s chance to let us know how it plans to address this challenge as it published its strategy for 2025 to 2030. Topics Risk Management and Regulatory Compliance Recognising the importance of the financial services sector to the UK economy, the FCA has set out an agenda to enhance the strength of the industry and, in turn, grow the economy. The FCA has four priorities:(1) Becoming a “smarter regulator” bya. Being more efficient, with digitised, faster license applications and the removal of redundant regulatory requirements.b. Conducting less intensive supervision for those firms visibly trying to do the right thing.c. Intervening with problem firms earlier and providing them a chance to change before enforcement.d. Reviewing data returns and retiring them where appropriate. (Three redundant returns have been identified already.)(2) Supporting growth bya. Introducing and delivering innovations such as the National Payments Vision and the Open Finance initiative.b. Stripping out redundant regulations and reviewing the redress regime.c. Prioritising the development of seamless account-to-account payments.d. Continuing to explore the use of tokenisation in asset management(3) Helping Customers bya. Protecting customers in accordance with the objectives of Customer Duty but in a balanced manner which focuses on the need for consumers to be suitably informed of all risks but does not insulate them from all risk.b. Establishing a new regulatory regime for targeted support that will allow people who currently do not access financial advice to make the most of their pensions and invest with greater confidence.c. Reforming the information investors get so that people aren’t overwhelmed by disclosures before taking informed risk.d. Ensuring that insurance offers fair value and is subject to competition for the 20m users.(4) Remaining steadfast in its efforts to fight financial crime bya. Raising consumer awareness and working with firms to implement and maintain the right controls.b. Collaborating with firms that want to play their part in tackling crime, while continuing to act against those through which criminal cash finds its way into our system.c. Driving awareness of investment and APP fraud by increasing alerts of potential scams and developing new ways to get these to consumers.The FCA’s strategy is a helpful summary of the direction the regulator is taking to address the Chancellor’s growth strategy for the UK economy. Many firms will have input into consultations and are keen to understand what changes to expect and determine how to respond. Further details will be needed before there is clarity, but what is clear is that the role of regulators supporting the financial sector to enable growth is a key new objective and it will change the approach to UK conduct regulation.
