FCA Business Plan 2019-20

The FCA has published its Business Plan for 2019/20. It is well worth reading to get a heads up on where the regulatory focus is likely to be over the coming months. The key topics on the FCA’s radar are summarised below.

EU Withdrawal (BREXIT)
Needs little explanation but read our previous article on the topic here. Advice Firms that do not passport into other jurisdictions will see little change in the short term.

Culture and governance
The most important initiative in this respect is the extension of the Senior Managers & Certification Regime to all FCA regulated firms on 9 December 2019. See our most recent article on SM&CR here.

Operational resilience
Covering how well firms protect themselves from cyber attack. The FCA will also be looking at the risks associated with the ever increasing use of technology to support financial services firms. What if it goes wrong?

Financial crime (scams) & AML
The FCA will be doing more work around tackling scams and improving AML supervision.

The future of regulation
Reviewing costs and benefits of regulation. Updating the rulebook post BREXIT.

Investment management
New requirements for asset managers. Consultation on a prudential regime for MiFID investment firms. Revised rules on liquidity management. Further assessment of Packaged Retail and Insurance-based Products.

Pensions and retirement income
A range of work on different aspects including – continued focus on defined benefit pension transfers; follow up to the Retirement Outcomes Review; joint priority work with The Pensions Regulator.

Retail investments
There will be further review of advice suitability. And the long anticipated analysis of the impact of the Retail Distribution Review and Financial Advice Market Review. Implementing remedies from the Investment Platforms Market Study.

General insurance and protection
GI distribution chains review, GI value measures, claims inflation, transparency of GI renewals are all on the horizon.

Fair treatment of existing customers
Investigating pricing practices in motor and home insurance to ensure fairness. Tackling price discrimination in the cash savings market.

Data and ethics
Ensuring proper use and exchange of data with financial services.

Demographic change
Intergenerational differences. And looking at the area of vulnerable consumers.

Retail lending
Various initiatives related to overdrafts, high-cost credit products, unaffordable lending.

Retail banking
A number of actions around the implementation of the Payment Services Directive. And a final push on PPI given the claims deadline of 29 August.

Wholesale financial markets
Work on compliance with the Market Abuse Regulation, MiFID II and a variety of EU regulations

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

The FCA has set out a busy schedule of work and the output from that work is bound to result in continuing changes in the regulatory environment that firms will have to adapt to. 

The short term focus might be on the obvious topic of BREXIT but the devil is, as so often, in the detail. We continue to see a focus on costs and value for money. The vexed topic of contingent charging is likely to remain a problem in search of a solution.

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About the Author

Technical Manager - Often referred to as the Oracle or the Sage, Alistair has a wealth of financial services experience. He is our go-to Technical Manager and enjoys nothing more than a complicated conundrum. Feel free to test his renowned knowledge by getting in touch.

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