FCA lays out plans for change

Mortgage Introducer

July 15, 2021

Nikhil Rathi has committed to making the Financial Conduct Authority (FCA) a more “innovative, adaptive and assertive regulator” with the release of its 2021/22 business plan. 

This is the first annual plan since Rathi joined the FCA as chief executive in October 2020.

He said: “The FCA must continue to become a forward-looking, proactive regulator. One that is tough, assertive, confident, decisive, agile.

“One that acts, acts fast—and where we can’t act, engages enthusiastically with those who can.

“Continuing to be more innovative, assertive and adaptive.”

In a statement on “our role” the FCA said it will be accountable for its progress on a number of areas including using new approaches to find issues and harm faster, tackling misconduct to maintain trust and integrity and investing in its people whilst reshaping its culture.

Rathi added: “Over the next 18 months you will continue to see an FCA that looks and feels even more different. One that operates differently, partners differently, and communicates differently.

“One that delivers market integrity and delivers for the consumers that we serve. One that is not only purposeful but that is fit for purpose.

“There is a lot of work to do. And I am confident that we have the right strategy, the right people and the right ambition to do it.”

The plan also sets out the key areas of focus for the FCA in the coming year.

In consumer markets priorities include progressing proposals for a new Consumer Duty to raise standards in firms’ treatment of consumers.

It will also work on improving diversity and inclusion, both at the FCA and in regulated firms.

The FCA is also set to begin a review of aspects of the rules on the scope and coverage of Financial Service Compensation Scheme payouts, for specific regulated activities.

The FCA will also be consulting on changing the balance between decisions taken by the FCA executive and the Regulatory Decisions Committee, which is a sub-committee of the Board.

The proposed changes aim to streamline decision making on authorisation applications and specific supervisory and enforcement decisions.

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