On March 19, 2024, the Financial Conduct Authority (FCA) shared its Business Plan for 2024/2025. Nikhil Rathi, Chief Executive of the FCA, stated, “We remain resolute in supporting the vital role the financial sector plays in the UK’s long-term economic growth, embracing the potential benefits that technology presents both for us and the firms we regulate, while also continuing to protect consumers and ensure market integrity.”
The plan outlines an ambitious agenda for the final year of the FCA’s three-year strategy, with a focus on achieving better outcomes for consumers and fostering a healthy financial market.
In this blog, we’ll break down the key areas emphasised in the FCA’s Business Plan for 2024/2025 to help ensure your firm is on the right track.
Understanding the FCA’s Priorities for 2024
The FCA’s business plan revolves around three core pillars: preventing serious harm, setting higher standards, and promoting competition. These priorities translate into specific areas of focus for the coming year:
- Consumer protection
The FCA will be rigorously assessing firms’ compliance with the recently introduced Consumer Duty. This means ensuring your firm prioritises fair treatment of customers, provides clear and accessible information, and upholds high standards of product suitability.
- Financial wellbeing
The FCA is dedicated to supporting long-term financial well-being for consumers. This translates to initiatives like the Advice Guidance Boundary Review, aimed at making financial advice more accessible. Firms should be prepared to adapt their practices to align with evolving regulations promoting financial well-being.
- Value for money in pensions
The FCA will be scrutinising pension products to ensure they deliver good value for consumers. Reviewing your pension offerings and ensuring they meet this benchmark is crucial.
Beyond Consumer Protection: Additional Focus Areas in the FCA’s Business Plan for 2024/2025
The FCA’s plan goes beyond consumer protection. Here’s what else to keep on your radar:
- Strengthening UK wholesale markets
The FCA aims to make UK wholesale markets more attractive and accessible. This could involve streamlining authorisation processes for firms or supporting innovation in the sector. Staying updated on these developments allows your firm to capitalise on potential growth opportunities.
- Data-driven regulation
The FCA is actively becoming a more data-driven regulator. Investing in robust data collection and analysis practices will be crucial to demonstrate compliance and anticipate the FCA’s potential areas of focus.
Proactive Strategies to Comply with the FCA’s Business Plan for 2024/2025
By familiarising yourself with the FCA’s Business Plan for 2024/2025 and its key priorities, you can proactively ensure your firm is compliant and well-positioned for success in the coming year. Here are some specific actions you can take to be proactive:
- Embed the Consumer Duty requirements into your culture.
Don’t just view the Consumer Duty as a box-ticking exercise. Integrate its principles into all aspects of your customer interactions, ensuring fair treatment, clear communication, and suitable product offerings.
- Review and update your financial well-being strategy.
Analyse if your current practices are aligned with initiatives like the Advice Guidance Boundary Review. Consider offering more accessible financial advice or educational tools to your customers.
- Assess your pension offerings.
Evaluate your pension products to ensure they deliver good value for money. This might involve reviewing fees, underlying investments, and transparency of information.
- Stay informed about wholesale market developments.
Monitor the FCA’s pronouncements on streamlining authorization processes or supporting innovation in wholesale markets. Identify potential opportunities to expand your firm’s reach or services.
- Invest in data analytics.
Enhance your data collection and analysis capabilities. This will not only help you demonstrate compliance with the FCA’s data-driven approach but also enable you to identify and address potential risks proactively.
- Maintain a culture of compliance.
Regularly review and update your compliance policies and procedures to ensure they align with the evolving regulatory landscape. Foster a culture of compliance within your firm, where employees understand their obligations through staff training and periodic attestations and feel empowered to raise concerns to the Compliance Officer.
Remember, staying informed about the FCA’s evolving regulations is an ongoing process. Regularly reviewing the FCA’s website and official announcements will be key to maintaining compliance throughout the year. By taking these proactive steps, you can ensure your firm operates with confidence and continues to deliver excellent service to your clients.
Adhere to the FCA’s Priorities with COMPLY
COMPLY offers consulting and technology solutions to help UK-based firms navigate the regulatory and compliance space so compliance teams can focus more time on growth-oriented tasks.
COMPLY’s UK Compliance Consulting Services package provides a holistic approach to FCA compliance, helping you and your team stay up-to-date with evolving requirements and changes, with:
- Comprehensive compliance reviews and annual updates.
- Tailored compliance monitoring programme development and implementation.
- Annual compliance training for all staff.
- Expert assistance with FCA applications and information requests.
- Ongoing consulting support from experienced professionals.
- And so much more!
Our professionals bridge the gap between business needs and regulatory requirements, ensuring your firm stays compliant while minimising operational burdens. That said, whether you have questions about the Consumer Duty or the latest FCAnews, our team of seasoned consultants are here to help.
Are you ready to not only meet but exceed the FCA’s expectations? Let’s talk!