The three-year strategy reflects FCA’s broad and growing mandate, as it prioritizes resources to prevent serious harm, set higher standards and promote competition.
The regulator will also be held accountable for published results and performance measures.
One of the main objectives of the strategy is to shut down problematic businesses that fail to meet basic regulatory standards. The FCA is recruiting 80 staff to work on the initiative, which it says will “protect consumers from potential fraud, abuse and create a better market”.
In March, Brian Corr, FCA’s acting director of retail lending, alluded to the move, saying it had identified companies at risk of falling below standards, engaged directly with them, and Enforcement remained an option, in a speech at the 2022 Credit Summit, sponsored by Equifax.
The FCA said that for every pound spent on its operations, consumers and small businesses benefit from at least £11. He also said he was reacting to the rising cost of living, which could lead to greater demand for credit products.
The strategy builds on activities launched last July, when FCA Chief Executive Nikhil Rathi committed the regulator to become more innovative, assertive and adaptive and to “transform the FCA into a data-driven platform “.
Rathi said: “Our new strategy enables the FCA to respond more quickly to the rapidly changing financial services industry. This will give us a foundation to continuously improve for the benefit of our stakeholders and respond quickly to economic and geopolitical developments.”