The Financial Conduct Authority (FCA) has laid out its vision for 2023/2024, and for compliance professionals serving firms that operate in the UK, it’s a roadmap ripe with both challenges and opportunities. Adaptability, agility and a laser focus on data-driven compliance are key themes for the upcoming year, requiring a strategic shift in how your firm’s compliance program operates.
Top five compliance areas in 2024
Here are the top five areas your compliance team should prioritize in 2024:
1. Data analytics
Invest in analytics tools to proactively identify potential risks and prevent consumer harm. Ensure robust data governance practices for security and quality. Be prepared for future regulations surrounding data usage and sharing. Remember, data-driven compliance isn’t just about ticking boxes – it’s about leveraging insights to anticipate and mitigate real-world risks.
2. Consumer protection
Consumer protection remains at the heart of the FCA’s mission, and rightly so. In the upcoming year, be sure to especially scrutinize internal processes to eliminate mis-selling, misleading advertising and unfair terms and conditions. Enhance customer care procedures to ensure prompt and fair complaint resolution. Be mindful of financial promotions – clarity, fairness and truthfulness are non-negotiables. Consumer trust is your most valuable asset – protect it fiercely.
3. Measures to ensure market integrity
Financial markets thrive on order and transparency. Implement robust systems and controls to detect and prevent market abuse, money laundering and other financial crimes. Maintain high standards of disclosure and transparency to ensure fair and orderly markets. Be an active partner with the FCA in investigations and enforcement actions. A healthy, ethical market benefits everyone.
4. Accommodating new technologies
Technology is reshaping finance, and the FCA is taking notice. Familiarize yourself with the evolving regulatory landscape surrounding cryptoassets, buy-now-pay-later (BNPL) and other emerging technologies. Develop robust risk management frameworks for these new frontiers. Engage with the FCA through consultations and industry forums to shape future regulations. Adaptability is key, so embrace the challenge and be a pioneer in responsible innovation.
5. Cybersecurity measures
Cyberattacks and operational disruptions are not “if” questions but “when.” Invest in robust cyber security measures to protect data and systems. Develop comprehensive contingency plans to ensure business continuity even in the face of challenges. Regularly test and update procedures to maintain effectiveness. Operational resilience is not just about technology – it’s about building a culture of preparedness across your organization.
Remember, this is not an exhaustive list. Stay informed through FCA publications and consultations, cultivate positive relationships with your supervisors and seek professional guidance when needed. The regulatory landscape is ever-changing, but by prioritizing these areas, you can not only ensure compliance but also navigate the exciting future of UK finance with confidence.
In 2024, compliance is not just about box-ticking; it’s about staying ahead of the regulatory curve, embracing technology and building a culture of responsible innovation. As compliance professionals, you have the opportunity to shape the future of finance by putting ethical conduct, consumer protection and market integrity at the forefront of your firm’s compliance program. Let’s rise to the challenge, together.
Elevating your firm’s compliance program with COMPLY
As compliance professionals in 2024, you have the opportunity to elevate your firm’s compliance program.
Whether your firm needs a consulting or technology solution or some combination of both, COMPLY offers tailored services to meet your firm’s specific needs. With COMPLY as your partner in compliance, you can rest assured that your firm is complying with confidence and is in compliance today – and in the future.
Ready to navigate compliance with ease in 2024? Let’s talk!