FCA Business Plan 2020/21: Our Key Takeaways

FCA Business Plan 2020/21: Our Key Takeaways
FCA Business Plan 2020/21: Our Key Takeaways

"We will not compromise on our expectations of firms, particularly that they make consumers’ interests the foundation of their business models and behave accordingly."

— Chair & Chief Executive Joint Message

  1. COVID-19 has led to extraordinary action by the FCA to protect the public interest and soundness of markets in the near term. However, future action will be required in the medium to long term, as more lasting economic impacts become clear. We may see an updated plan released later in 2020.

  2. The FCA is continuing to reshape itself to be more digital and foster innovation through cultural changes and technology investments. In order to remain agile and competitive in a changing landscape, firms should too.

  3. Protecting the vulnerable has been highlighted as a central imperative across its priorities over the next 1-3 years. Firms should have an established framework in place for identifying and managing its vulnerable customer base.

  4. Firm’s will continue to be assessed for adequate systems and controls to prevent against financial crime, particularly in the rapid payment service sector.

  5. Operational Resilience remains a priority, and the FCA’s guidance continues to develop. Firms should be proactively thinking about what critical business services they offer, and how disruption could impact their financial viability, customer base, and the wider market.

  6. Work on Brexit will not stop as the UK moves out of the transition period at the end of this year.  We can expect guidance to ensure the industry is prepared for new rules following the departure.

  7. Regarding conduct and culture, the FCA has shifted resources to place more attention on Senior Management and Certifications Regime in 2020. There is an expectation that its principles are  firmly embedded within company culture across industry sectors.

  8. The future regulatory framework in the UK, post-Brexit, will change. Firms should anticipate more emphasis places on principles and outcomes, and less focus on rules and process in future legislation. 

For more information, please contact Bernadine Reese, Managing Director, Risk & Compliance at [email protected].

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Bernadine Reese
Bernadine Reese
Managing Director