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.
“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.
