Simon Turner, UK Financial Services Partner at EY comments on the FCA 2022 Business Plan:
“The focus of the FCA remains on its transformation and how it will hold itself to account, rather than new initiatives in the latest business plan. Beyond this, the shift to assessing firms on outcomes continues, whether through the new Consumer Duty or an increased focus on Threshold Conditions. Firms that have invested in getting ahead of this regulatory change will welcome this as a signal that the FCA’s regulatory priorities remain consistent.
“The strategic priorities provide continuity with the last business plan, and make clear that the shift in focus to outcomes remains. The responsibility lies squarely on firms to ensure that they are acting within the spirit of the rules.
“The commitment to Consumer Duty makes the policy statement expected later this year even more important in terms of understanding how the FCA will approach the supervision of firms in the coming years. Levels of fraud in the market appear to remain high and the FCA is clearly committed to tackling this – whether through consumer information campaigns or through raising the standards of firms’ anti-fraud protections. Unsurprisingly, ESG, including D&I, continues to increase in its importance to the regulator, both in holding itself to account for its diversity targets, but also in authorisation and its supervisory approach with firms.”