Therefore, those firms offering or insuring services linked to cryptocurrency derivatives should prepare for the potential impacts of greater regulation.
Reforming pensions The roll-out of automatic enrolment brings a new set of challenges to the UK pensions market. According to the Business Plan: Transparency - the FCA aims to increase transparency around when and how regulatory judgements are made, as well as around the benefits and costs of regulation.
The risk outlook sets out the FCA's approach to assessing risks to its objectives. Key questions firms should consider include: The FCA also references interest in outsourcing to third parties that are not FCA regulated and to third parties that support multiple firms, and therefore may present a "magnified risk".
Technology and innovation As with last year's plan, the FCA wants to position itself as a regulator that is willing and able to support the most innovative of firms.
This is the first Business Plan since Andrew Bailey became the CEO and he has stamped his mark on the document both in terms of size it is twice as big as the last one and content it contains more detailed analysis of cross sector and individual sector risks.
We expect more FCA rulemaking, supervisory, and enforcement activity going forward. Fintech firms are challenging traditional financial business models and are likely to play a key role in firms moving towards less capital-intensive business models, where after the initial investment firms benefit from economies of scale with lower ongoing costs.
It will be an economic regulator for retail payment systems. The FCA appreciates that the UK needs a more comprehensive overview of how capital markets are being used for money laundering and is set to undertake diagnostic work to decide on the best approach in maintaining the integrity and fairness of UK markets.
It is also worth mentioning that cryptocurrency, which falls under this priority sector, is an area of increasing interest for the FCA. Here are some of the main issues, listed by sector: The Mission states that further detail on specific regulatory functions - Authorisations, Supervision and Enforcement - will follow in the coming year.
The undertaking of work to address the issue of de-risking, reported on in May Vulnerability and access are a challenge in any consumer market, but particularly so in the context of financial services partly because of the long-term nature of commitments and the complexity of products and information, but also because vulnerability covers a range of situations and can occur to consumers at any point in their lifetime.
Protect consumers — to secure appropriate protection for consumers Integrity — to protect and enhance the integrity of the UK financial system Promote competition — to promote effective competition While all three objectives should be obvious to the common reader, the third objective, regarding competition, is typically ignored by similar governmental entities around the world.
The Business Plan foreshadows expectations for the coming year with a focus on managing potential risk. It is imperative that firms assess how effective they are in these areas now, to ensure that they are not the subject of potential regulatory action if they are included in the thematic review.
Societal and technological changes have increased the scope and sophistication of financial services. The transition period will not arise unless there is an agreement on the Withdrawal Agreement as a whole. The delivery of its objectives is further complicated by the significant uncertainties posed by Brexit, international events, demographic change and movements in the global economy but, as Mr Griffiths-Jones FCA Chairman says, the FCA is required to be a regulator for all seasons and will need to encompass the challenge that this represents.
Securing an appropriate degree of protection for consumers see Protecting consumers below. Processes and procedures in some firms do not consider how vulnerable customers should be treated. In the mortgage sector, for example, the FCA will be looking at customers with long-term mortgage arrears, and at interest only mortgages approaching maturity.
The work in this area is likely to impact providers of such investments and those who advise on them, as well as potentially those offering non-advised sales services.
Business Plan Update January 27, 2 Safe Harbor Statement This document, and in particular the section entitled “ Guidance”, contains forward-looking statements. The UK Financial Conduct Authority (FCA) recently issued its Business Plan /18 that deals with its FinTech and RegTech priorities for the year ahead.
The FCA wants to engage more with regional.
In chapter 6 of the business plan, the FCA refers to its risk outlook for (see Risk outlook for below) and identifies seven key forward-looking areas where potential risks to its objectives may arise. Update In the current evolving regulatory landscape and with the uncertainty brought about by Brexit, the Financial Conduct Authority’s (FCA) business plan for /19 is one of the most anticipated publications to date.
It was issued earlier this month. Jun 01, · An FCA connectivity platform will be launched in April and be available on all new cars by The system is designed to integrate with any service provider Brand Highlights ( p.m.).
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