The Financial Conduct Authority (FCA) has launched a new 5-year strategy to deepen trust, rebalance risk, support growth and improve lives. Industry professionals have since shared their views, and can be seen below.
Ashley Alder, Chair of the FCA, said:
“We want to deepen trust in financial services and shift our collective attitude across financial services to risk. Too often the focus has been on the risks of a decision taken rather than the lost opportunity of taking none. We want to change that so we can spur growth and improve lives.”
Nikhil Rathi, Chief Executive of the FCA, said:
“Our last strategy set high standards and bolstered our operational effectiveness. We are committed to going much further, delivering at pace to meet the scale of change we are facing over the next 5 years. This strategy sets out our priorities, how we’ll become more efficient and effective and make the choices that shape the financial system.
Our 4 priorities reinforce one another and we look forward to collaborating with our partners as we become a smarter regulator, support growth, help consumers and fight crime.
We are ambitious for the future and committed to enabling a fair and thriving financial services market for the good of consumers and the economy.”
Hannah Gurga, ABI Director General, said: “The FCA’s latest strategy sets a positive direction for the future of regulation. We fully support its focus on encouraging growth through investment and innovation, and its intention to be a predictable, purposeful and proportionate regulator. This will be crucial to provide certainty for our industry and its customers. And it’s encouraging that the FCA’s immediate areas of action include ensuring its approach to the Consumer Duty supports both effective competition and innovation, as well as providing fair value for consumers. We look forward to seeing more detail on this later this year.
The FCA’s commitment to working with the industry to help consumers navigate their financial lives, and its renewed focus on combatting fraud and financial crime is also welcome. We’d encourage the FCA to use its full suite of supervisory and enforcement powers to disrupt illegal activities, and welcome the opportunity to work together to equip consumers with the information they need to better protect themselves from scams.
We’ll continue to work together with the regulator, our members and the wider industry to deliver good outcomes for customers.”
Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group said: “It’s encouraging to see Targeted Support prioritised in the FCA’s strategy update. As we mark the tenth anniversary of Pensions Freedoms, it’s clear that savers value flexibility but also crave stability and certainty in retirement and, with less than 10% using a financial adviser, improving access to tailored guidance is crucial to help people get the balance right. It’s vital that we keep up the momentum behind this initiative to make sure that people understand their options and feel confident in making the right decisions for them.
As we move through the next few years, a collaborative approach between the regulator, consumer groups, providers and policymakers will be essential to ensure swift implementation of a strong Targeted Support solution. Done well, it has the potential to enable movement from complexity to clarity and deliver meaningful support to help people navigate their retirement with confidence.”
Commenting on the FCA’s 2025-2030 Strategy and Consumer Duty rule review, Chris Cummings, Chief Executive of the Investment Association (IA), said:
“Today’s strategy from the FCA is a welcome, clear commitment from the regulator to support UK growth and competitiveness, alongside a focus on helping the customers of today and tomorrow.
Rebalancing risk is key – the shift in regulatory approach demonstrates the regulator has listened to the calls from the IA to tackle ‘safetyism’ and recognised that there is a risk in consumers not taking decisions which could improve their future outcomes. We want more people to benefit from investing and will work with the regulator to achieve their target to see a higher proportion of consumers holding mainstream investments – another key ask of our industry. Building trust to help people take informed decisions on appropriate risk will enable them to build their financial resilience and enjoy more prosperous retirements.
In tandem with this, we welcome that the FCA has heeded calls from industry that its approach to supervision must change, and on simplifying the rulebook following Consumer Duty. It is important that the regulator fully implements its aim of simplification, and we will work with the FCA to deliver this specific programme of action, while also ensuring that regulation remains fit for the future.”
Commenting on the FCA’s 2025 to 2030 strategy, published today, Imogen Makin, counsel at WilmerHale, said:
“The FCA’s priorities for the next five years are not surprising. The fight against financial crime has been a long-term priority and has clearly remained so during Q1 2025, with two of the four published financial penalties specifically relating to failings regarding financial crime.
It is clear from the FCA’s strategy that it will use “all the tools” at their disposal to combat financial crime, in both a supervisory and enforcement context. The strategy also highlights that the FCA will draw on relationships with both domestic law enforcement and regulators, as well as international counterparts.
This is yet another acknowledgment that the fight against financial crime is a truly international one. It follows hot on the heels of last week’s announcement that the UK, France and Switzerland (the UK Serious Fraud Office, France’s Parquet National Financier and the Office of the Attorney General of Switzerland) have committed to a new anti-corruption alliance. International financial services firms should, therefore, avoid taking a siloed approach to financial crime in each jurisdiction, and would be well-advised to ensure that their anti-financial crime systems and controls function, not only in each jurisdiction, but also across borders when required.”
Wendy Saunders, Partner and Co-Head of Financial Services at Lewis Silkin, commented:
Becoming more efficient and effective, and deepening trust, are laudable objectives. As a starting point, what the FCA really needs to do is deliver greater regulatory certainty, predictability and fair processes.
It needs to get the basics right, and make sure it proposes well-considered policies. This will facilitate both trust and growth.”
Michael Shand, Managing Principal at financial services focused technology and management consultancy Capco, comments on the Financial Conduct Authority’s new five-year strategy announcement saying:
“The FCA’s new five-year strategy is firmly aligned with the UK government’s growth agenda, but there could be some additional clarity around success metrics – though that task is made more challenging by factors outside of the FCA’s control, such as macroeconomic factors, competition from other jurisdictions, and the take up and future impact of technology.
“While banks and other financial services will welcome the spirit of the FCA’s strategy – a growth focus, proportionate oversight, and an ambition to simplify, reduce or remove reporting obligations – its implications could vary widely in practice.
“It is welcome that the FCA is placing consumer outcomes at the heart of the new strategy. It is clearly prioritising greater financial inclusion and resilience through a combination of greater participation in more complex, higher risk investing with a robust approach to protection, for example by cracking down on financial crime.
“The FCA has also recognised the power of technology and innovation – from AI to Open Finance – as key enablers. There is a focus both on efficiency – for the FCA and the firms it regulates – and access, including unlocking more sources of funding.
“The strategy provides a useful reference point for banks and other financial services firms to assess their priorities and opportunities in line with these themes. However, they will no doubt welcome greater clarity as the strategy translates into the FCAs specific plans and actions.
