FCA publishes its 2024/25 Business Plan

The FCA has published its Business Plan for 2024/25, highlighting challenges including the ongoing impact of economic and geopolitical uncertainty on both firms and consumers who continue to struggle with higher inflation (which remains above the target of 2%) and borrowing costs.

Key areas of focus for the FCA in the next year include:

• Reducing and preventing financial crime by seeking to reduce the incidence of money laundering (such as increased engagement with the National Economic Crime Centre and a focus on the proactive assessment of anti-money laundering controls of higher risk firms), improving capabilities to spot scams and Authorised Push Payment financial promotions and requesting their removal.
  
• Protecting consumers through embedding the Consumer Duty focusing on fair value (such as improving pricing or removing products or services from the market as appropriate), requiring firms to act in good faith and avoid foreseeable harm, seeking to ensure consumers are equipped with the right information to make effective, timely and properly informed decisions and products which meet consumer needs, characteristics and objectives and requiring firms to support consumers to sustainably manage their debts.
  
• Ensuring market integrity through capital markets reforms such as changes to the listing regime and consulting on the commodity position regime to improve resilience to extreme events (such as last year's dislocation of the commodity markets following the Russian invasion of Ukraine and consequent sanctions).
  
• Tackling market abuse by developing analytical capability to detect cross-asset class market abuse and the publication of the FCA's peer review of Direct Market Access provider market abuse systems and controls.
  
• Pursuing ESG initiatives including the integration of Sustainability Disclosure Requirements and Investment labels such as the anti-greenwashing rules and guidance and consulting on the potential expansion of the regime to portfolio management.
  
• Managing the risks of digital markets by analysing the impact of AI on UK markets and investigating digital consumer journeys.
  
• Improving the redress framework including a review of lead generation within the Claims Management Companies sector and the ongoing motor finance market review.
  
• Taking action where financial promotions are not compliant or where potential misselling is identified, supervising cryptoasset firms' financial promotions and using technological capability to detect harmful financial promotions.
  
• Improving oversight of Appointed Representatives including increased scrutiny and engagement at the time of appointment and supervision and/or enforcement in relation to high-risk principals.

If you have any queries or would like to discuss matters further, do not hesitate to contact Sonya Zywko or Alan Hughes.