Global menu

Our global pages

Close

FCA’s Business Plan 2018/19

  • United Kingdom
  • Financial services disputes and investigations
  • Litigation and dispute management

10-04-2018

On 9 April 2018, Financial Conduct Authority (“FCA”) issued its Business Plan for 2018/19 which sets out the regulator’s key priorities for the coming 12 months.

Cross-sector priorities

The business Plan sets out a number of key cross sector priorities, which include:

  • Preparing for Brexit – including (i) providing technical advice to the Government to ensure there is a robust regulatory system in place on the day the UK leaves the European Union (“EU”); (ii) reviewing and updating the Handbook to reflect legislative changes; (iii) continued co-operation with regulatory authorities acrosfs the EU; and (iv) assessing the impact of transitional arrangements 
  • Culture and governance – including (i) finalising the extension of the Senior Managers and Certification Regime to all FSMA firms (including new rules to be published in summer 2018); and (ii) establishing a public register of senior managers at regulated firms
  • Financial crime – including (i) embedding the new Office for Professional Body Anti-Money Laundering Supervision; (ii) tackling money laundering, with particular focus on building a more comprehensive picture of how capital markets are being used for money laundering (iii) reviewing recommendations from the Financial Action Task Forces’ evaluation of the UK; and (iv) publishing findings on money laundering in the e-money sector
  • Data security resilience and outsourcing - including assessing the risks of outsourcing and third party providers and monitoring the roll out of technology and resilience data as part of Open Banking and PSD 2
  • Innovation, big data, technology and competition – including (i) publishing new crowd funding rules; (ii) reviewing cryptocurrencies along with the Treasury and Bank of England and publishing a Discussion Paper later this year which outlines policy thinking; and (iii) reviewing firms’ use of data and publishing a memorandum of understanding with the Information Commissioner’s Office
  • Examining firms’ treatment of existing customers, with the FCA noting that it is expecting to take over responsibility for regulating claims management companies in spring 2019 
  • Long term savings and pensions – including understanding the levels of consumer under saving for retirement and publishing feedback on competition in non-workplace pensions
  • Considering alternatives to High cost credit

Sector-specific priorities

In addition to the overarching priorities detailed above, the FCA also has a number of sector-specific priorities which include:

  • Retail lending – launching a market study on credit information, reviewing commission arrangements between credit brokers and other firms, reviewing retained Consumer Credit Act provisions and ensuring the debt sector works well for consumers
  • Pensions – developing a joint pensions strategy with the Pensions Regulator
  • Retail banking – delivering the revised PSD2 and continuing to help firms prepare for ring fencing
  • Wholesale financial markets – reviewing money laundering in capital markets, monitoring compliance with rules on IPOs and monitoring compliance with new conflicts of interest requirements

Conclusion

The Business Plan clearly indicates a busy and challenging year ahead for the FCA, with Andrew Bailey, the FCA’s Chief Executive, stating:

the priorities in this year’s Business Plan reflect the high level of resource we need to dedicate to EU Withdrawal, given its impact both on our regulation and on the firms we regulate.  This inevitably affects the amount of work we can undertake in other areas.  As a result, agreeing our 2018/19 priorities has involved particularly rigorous scrutiny and challenge

As well as focusing on its core regulatory activities, the FCA will need to work efficiently and use its resources flexibly over the coming year in order to work on its priority areas as well as plan for the UK’s withdrawal from the EU.

Insight

The FCA’s shopping basket for 2018/19 is an unsurprising list of ingredients with post-Brexit regulation as a critical priority.  The scale of this task does bring into sharp relief the challenges of delivering on the remaining plans and, with the impending move to new offices in Stratford and the upheaval this could cause, there is a real risk that some of the FCA’s items will not be delivered on time or possibly at all, with UK retail consumers bearing the brunt of any non-delivery. 

In delivering a Brexit-ready Britain, companies should expect that money laundering, data security and Fin Tech will dominate the regulatory agenda and dialogue for the next 12 months as the FCA does its part to ensure the City remains an attractive place to do business after March 2019.

For more information contact

< Go back

Print Friendly and PDF
Subscribe to e-briefings