Nikhil Rathi, Chief Executive of the FCA, gave a speech on how it intends to regulate financial services for the future.
A different regulator?
He stressed that the FCA was:
- redesigning its operational platform to better adapt, collaborate, address threats, mitigate shocks and embrace opportunities;
- investing in data and tech platforms to improve how it used analytics and insights to support its decision making;
- scanning 100,000 websites every day to identify fraudulent or scam activity targeting UK consumers;
- embarking on a new approach to digital regulation through the Digital Regulators Cooperation Forum; and
- testing its powers to the limit and where those powers were lacking, using its influence to effect change.
Rathi confirmed that FCA’s remit was still limited to anti-money laundering rules for platforms but those rules have been applied consistently and participants recognise the need for a regulatory regime for crypto assets as being a high priority. That said, participants did reveal that they would like regulation to be phased over time to allow firms and investors time to prepare and adapt for the rules.
Rathi reinforced the importance of FCA’s ESG strategy. FCA will later this year release its sustainability disclosure requirements, to enhance transparency and promote stronger governance.
UK Consumer Duty
FCA wants to break new ground with new consumer duty and says that “firms who do the right thing should welcome action to tackle competitors who drive down standards”.