The UK’s financial services sector is set to reap significant benefits from the FCA’s enhanced performance in its authorisation processes.
With a marked improvement from the previous year, the FCA now successfully assesses 98% of applications within statutory deadlines, including those from wholesale market firms—a substantial increase from the 89% compliance rate recorded in the first quarter of 2022/23.
This improvement is part of a broader effort by the FCA to facilitate the entry of overseas wholesale financial firms into the UK market, supported by pre-application guidance aimed at smoothing their regulatory journey. In addition, the FCA has undertaken the most extensive overhaul of the listing rules in over 30 years, aimed at fuelling economic growth by enabling firms to secure the necessary capital for expansion.
The regulator has also escalated its interventions to prevent harm to consumers more rapidly than before. This includes a significant rise in the cancellation of firm authorisations, where the numbers doubled in 2023 to 1,261. Furthermore, the FCA has increased its actions against firms causing serious concerns by 68%, targeting 34 companies this past year.
The FCA’s commitment to consumer protection is further demonstrated through its actions to ensure fair resolution of complaints and compensation. Nearly 100 lenders were pressed to support borrowers in financial difficulty, with expectations that around 270,000 customers will receive approximately £60m in compensation.
Moreover, the FCA’s ongoing crackdown on financial crime has seen a record number of 21 individuals charged since April 2023, with 9 new freezing orders issued this year alone, securing £21.1m in assets from those under investigation.
In the realm of consumer protection, particularly concerning the volatile crypto market, the FCA has instituted new regulations to ensure that promotions of cryptoassets are transparent, fair, and non-misleading, aiding consumers in making informed decisions.
Furthermore, since 31 July 2023, over 42,000 firms have been mandated to demonstrate that their products and services, both new and existing, deliver favourable outcomes for consumers, pursuant to the new Consumer Duty regulations.
Ashley Alder, Chair of the FCA, highlighted the broadening scope of the regulator’s responsibilities, underscoring its role in shaping the future of the UK’s financial services through strategic regulatory changes and the introduction of the Consumer Duty.
Nikhil Rathi, CEO of the FCA, affirmed the authority’s dedication to supporting the diverse needs of consumers, businesses, and the broader economy, positioning the UK as a global leader in financial services.
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