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Provide an FCA Regulatory Business Plan
The FCA Business Plan and the Future of Financial Regulation in the UK
Perhaps the most important regulatory document is the business plan which the FCA releases each year. It sets out their objectives and areas of focus over the coming twelve months, allowing compliance professionals to plan their regulatory horizon scanning. In the mist of coronavirus the FCA have released the business plan on schedule, although heavily re-written to factor in the herculean challenge the pandemic brings to the industry, as well as all of us. In the medium term the FCA say they have the following objectives. They are that consumers:. One takeaway comment is that the current framework is too focused on rules rather than principles and objectives, so expect a more principles based approach going forward. The exact detail of these measures as, by their own admission, unclear at present.
Last month, the FCA produced its business plan for , setting out key priorities and activities for the year ahead. There were plenty of nuggets to help firms improve their risk profiles as well as a raft of insight into regulatory strategy. Brexit challenges were centre stage, although it was admitted that balancing the demands of this with other pressing requirements was far from easy. The regulator has published its final guidance for firms — although this can only go so far, given there has been no clear exit plan agreed as of yet. Mainly, these will cover the future relationship between the UK and the European Union as well as, for financial services in particular, the vital issue of equivalence and whether or not the EU will extend this to the UK post-Brexit.
The FCA places an understandable focus on EU withdrawal, which will be welcomed by the industry seeking to progress their plans for Brexit. The FCA is faced with the difficult challenge of balancing Brexit activities and its wider market work. Its role in ensuring a smooth Brexit cannot be underestimated, with a significant proportion of resources focused on the forthcoming withdrawal from the EU. Given recent concerns about the misuse of private data, data security continues to be a priority. In addition, the focus on consumer vulnerability and access to financial services underlines the challenge the FCA faces in balancing innovation and big data with good customer outcomes in its approach to regulating in a more digital world.