The Financial Conduct Authority has reduced enforcement timelines to enhance efficiency, according to a five-year plan, which focuses on efficiency, innovation, tackling financial crime, and empowering consumers. The regulator is now inviting industry stakeholders to join in improving the financial industry, which is based on confidence and growth.

The FCA has concluded its current three-year strategy and is now targeting a more ambitious framework spanning five years. In a speech at TheCityUK National Conference, Emily Shepperd, FCA's Chief Operating Officer, highlighted that the regulator's goals include enhancing regulatory efficiency, boosting consumer confidence, and fostering innovation.

Shepperd also highlighted a commitment to leveraging technology, including advanced data analytics, to streamline processes and improve outcomes.

Streamlining Regulation

A key theme is the FCA's commitment to becoming a more efficient regulator. Industry leaders have called for more predictable, pragmatic, and cost-effective oversight. In response, the FCA has ramped up automation and accelerated enforcement timelines, with recent cases closing in 13 months compared to a 42-month average.

Shepperd also noted the important role of better regulations in the financial services sector. In 2023, the financial services industry contributed £278 billion to the UK’s economy, accounting for 12% of total economic output and generating £110 billion in tax revenue.

The UK is also home to the world’s second-largest asset management sector, with UK asset managers overseeing £11 trillion in assets. Additionally, the UK is targeting international investors. Foreign direct investment (FDI) in 2022 reportedly amounted to £2 billion, driven by asset managers, fintechs, and investment banks establishing offices in the country.

The battle against financial crime remains a cornerstone of the FCA's strategy. Financial fraud and money laundering harm consumers and undermine the integrity of the financial system.

Empowering Consumers for Resilience

Leveraging data analytics, the FCA has already demonstrated its ability to detect criminal activity faster. Its strategy reinforces international partnerships to combat this global issue. The regulator is exploring innovative solutions, such as digital identity tools, to streamline anti-money laundering procedures while maintaining high standards of protection.

Through initiatives like Consumer Duty, the FCA ensures that firms empower consumers to understand better their options, from savings and pensions to more sophisticated investment opportunities.

The FCA aims to support this by fostering innovation through programs like the Regulatory Sandbox and AI Lab. These initiatives enable firms to test new technologies safely and bring products to market faster.