Recognising the vital role that the regulator plays in enabling new financial services firms’ ability to meet regulatory standards to get off the ground, the FCA has improved its authorisation process. Now 98% of cases, including applications by wholesale market firms, are assessed within statutory deadlines, up from 89% in Q1 of 2022/23.
Overseas wholesale financial firms wishing to operate in the UK can also benefit from pre-application support from the FCA. The regulator has also recently completed the biggest reform to the listing rules in more than 3 decades. These changes support economic growth by helping firms access the capital they need to grow.
Other highlights include:
Intervening to stop harm to consumers more quickly
The FCA has continued to improve how it detects problem firms and individuals, which helps earlier intervention. For example, it doubled the cancellation of firm authorisations in 2023 to 1,261 and used its powers to intervene against 34 firms, who caused serious concerns,?up 68% on 2022.
Improved fair complaint resolution and compensation
The FCA has taken strong action to make sure firms are compensating consumers, promptly and fairly, when things go wrong. This year it intervened with almost 100 lenders to make sure they were supporting borrowers in financial difficulty, and the FCA expects that approximately 270,000 customers will receive close to £60m in compensation.
At the same time, through its work on prevention, the Financial Services Compensation Scheme (FSCS) levy on the industry has fallen to a 10-year low.
Strong action to tackle financial crime
Since April 2023, the FCA has charged 21 people with financial crime offences which is the highest number of charges it has made in a single year. In 2023, it secured 9 freezing orders, 6 more than in 2022, and restrained £21.1m in assets of individuals under investigation.
Protecting consumers in the crypto market
The FCA has introduced new rules that require cryptoassets promotions to UK consumers to be clear, fair and not misleading. This helps consumers better understand what they are buying, and the risks involved.
Protecting consumers
Since 31 July 2023, more than 42,000 firms must make sure they can evidence good outcomes for consumers for any new and existing ‘on sale’ products and services, and for closed ‘not on sale’ products since 31 July 2024, in line with the Consumer Duty.
Supporting innovation
The FCA continues to support innovation in financial markets, including the creation of a permanent Digital Sandbox, a testing environment that supports firms at the early stage of product development.
Ashley Alder, Chair of the FCA, said: 'The report period saw the introduction of significant additions to our remit, an extension of our external accountability and an expansion of our statutory objectives.
'These changes, together with the introduction of the Consumer Duty, will help determine how the FCA is able to contribute to the health and success of the UK financial services sector for years to come.'
Nikhil Rathi, Chief Executive Officer of the FCA, said: 'As we have shown this year, we are fully committed to both supporting and balancing the different needs of consumers, businesses, and the wider economy, enabling all to flourish.
'We recognise the importance of providing an effective and efficient authorisations service if we want the UK to be the best place in the world for financial services to thrive.
'We continue to play a leading role internationally by shaping the global standards on crypto, sustainability, and non-bank finance to name but a few.'
FCA Annual Report 2024
|
