A plan has been set out by The Financial Conduct Authority. The plan includes 13 commitments over three areas: to reduce and prevent serious harm to consumers, set higher standards and promote more competition in the industry. For the first time, the watchdog will publish measures that it can be judged against. The FCA also said it is recruiting more staff to help police the markets, hiring 80 employees who will focus on shutting down problem firms that do not meet regulatory standards.
According to CEO Nikhil Rathi, the changes will mean faster decisions against misbehaving firms, and in turn cheaper regulatory costs for those that stick to the rules. The watchdog needs to be efficient at approving new companies, as well as on social media platforms that host financial advertising, he said.
Meanwhile, according to Rathi, the watchdog FCA is pulling together new teams to monitor compliance with sanctions against Russia following the invasion of Ukraine. The regulator is “watching very closely” any use of cryptocurrency and e-money companies to skirt the restrictions.
The focus on consumers comes with the FCA, which was established in the aftermath of the financial crisis, under pressure to act more forcefully. It has faced criticism after a mini-bond scandal in 2019 exposed retail investors to losses on more than $300 million in investments. The FCA made its first criminal prosecution last year under 2007 money laundering rules, as part of its more proactive stance.
