FCA Reflects on its Approach in 2021

The FCA has reflected on its new approach in 2021. The regulator has stated that it will continue to pursue its primary objectives of protecting consumers from harm, enhancing the integrity of the UK’s financial system and promoting competition, while striving to become “a more innovative, adaptive and assertive regulator.”

Under its objective of protecting consumers, the FCA highlights:

Under its objective of enhancing the integrity of the UK’s financial system are:

  • Fines issued – NatWest was fined £264 million in December under anti-money laundering legislation.
  • Reforms to the FCA’s decision making processes, to ensure there is quicker action being taken to protect consumers.
  • Standards being applied more robustly when firms are being authorised. In the year up to 2 December 2021, 1 in 5 firms (up from 1 in 6 when last reported) applying for authorisation were refused, rejected or withdrew their application after discussion with the regulator. Newly authorised firms are to benefit from additional support following a pilot run in 2021. When this is fully rolled out in 2022, this early oversight, alongside regular contact from the FCA, will help firms treat their customers fairly during the early years of their development.

Under its objective of promoting competition, the FCA highlights:

Chief Executive of the FCA, Nikhil Rathi, said, “The FCA has protected customers, enhanced the integrity of the UK’s financial system and promoted competition this year, despite the additional challenges of the pandemic. We have reformed the general insurance market, saving consumers £4.2bn over 10 years, led the transition from LIBOR and helped small businesses claim £1.2bn against business interruption insurance cover. We are looking forward to using our innovative, adaptive and assertive approach to achieve even more for consumers and the financial market next year.”

If you need help with any compliance issues, please contact your Business Manager or the team at RWA via 01604 709509 or helpdesk@rwagroup.co.uk.

About the author

Steve has over 15 years of experience in retail general insurance, including influential roles at Hallmarque Assistance Ltd, Endsleigh and more recently as Compliance Director for Premium Choice Ltd, a large independent insurance broker.

Steve is Head of Compliance at RWA and is responsible for the day to day needs of some of RWA’s larger clients nationwide, often working with RWA’s senior team on larger more complex projects such as those involving remedial works, auditing of standards, developing compliance frameworks and providing project assurance, particularly when subject to FCA scrutiny.

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