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The Financial Conduct Authority (FCA) has published its work programme and priorities for the year ahead. The FCA’s Business Plan 2016/17 explains how the regulator will meet its three operational objectives to protect customers, promote competition and enhance market integrity in order to achieve its overarching strategic objective of making markets work well. Incorporated into the plan is the regulator’s Risk Outlook which identifies trends in the markets and firms regulated by the FCA and the risks to which it needs to respond.
The FCA has identified seven priorities and has provided details of the work it is going to be carrying out in each of these areas to support the plan. The seven themes where the FCA intends to concentrate its attention are as follows:
- Pensions
- Financial crime and anti-money laundering – in particular ensuring that the financial crime control regimes are proportionate and operate efficiently, and that any unintended consequences of regulation are minimised. Work will include further support to encourage good whistleblowing intelligence from firms, running a new phase of the ScamSmart campaign to protect consumers and rolling out the Financial Crime Annual Data Return to affected firms.
- Wholesale financial markets – ensuring that these markets are clean, effective and competitive is vital to the UK’s economic prosperity.
- Advice – Changing consumer needs and pension reforms mean access to affordable, professional advice is now more important for consumers than ever. Work will support helping people access a well-functioning advice and the support they need to make informed financial decisions at every stage of their lives and include implementation of the recommendations of the Financial Advice Market Review.
- Innovation and technology – the FCA says it has a role to play in ensuring firms’ technology and systems become more resilient to both cyber-attacks and more traditional outages, safeguarding consumers and markets and building confidence in the effectiveness of financial technology. Work will include the launching of a so-called “Regulatory Sandbox” to give firms a safe space to test innovative products and services.
- Firms’ culture and governance – the regulator wants to see firms managed in a way that promotes appropriate culture and behaviours. A firm’s governance and culture will need to contribute to delivering good outcomes for customers and market integrity, and to promote effective competition in the interest of consumers.
- Treatment of existing customers – the FCA said it had seen poor practice in the treatment of existing customers who had become inactive (back books). This includes firms’ not informing customers about other available products, applying switching or exit fees or creating other barriers to reduce competition and discourage existing customers from changing providers or products.
Annex A of the document contains an update on ongoing market-based activity which shows: the FCA’s Big Data review in the GI market is expected to produce its report in Q3 2016; the review of GI brokers’ professional indemnity insurance is due to be completed in Q2 2016; and its appointed representatives’ review is also set for completion in Q2 2016.
The plan also indicates that a review of the Financial Services Compensation Scheme’s funding classes starts this month (April 2016).
Members may access the document by clicking here.
BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk
The post FCA sets out its regulatory stall in business plan for 2016/17 appeared first on British Insurance Brokers' Association.
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