The City watchdog says it will change over the next year and a half to become more innovative, adaptive and assertive, prioritising its work to clamp down on scams and improve pensions advice.
According to the Financial Conduct Authority’s business plan for 2021-22, published this morning (July 15), the regulator will make three distinct changes.
The first is to become more innovative and take advantage of data and technology to “increase its ability to act decisively”.
Secondly, it will become more assertive to test the limit of its powers, and lastly will become more adaptive to adjust its approach as consumer choices, markets, service and products all evolve.
To achieve this, it will invest £120m into its data strategy over the next three years.
Nikhil Rathi, chief executive of the FCA, 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.”
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 sets out key areas of focus for the FCA over the coming year.
In the consumer markets space, the regulator said it will continue its work to improve standards of pensions advice, something it has been doing in the defined benefit space for several years now.
Other priorities include running a consumer campaign on scams and high-risk investments and strengthening rules on financial promotions to protect consumers in relation to investments.
The FCA also wants to improve diversity and inclusion, both in firms and at the regulator itself.
Last week (July 7), the FCA along with the Bank of England and Prudential Regulation Authority looked at linking executive pay to diversity targets to make senior leaders directly accountable for diversity and inclusion in their firms.
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