Accounting Standards

FCA launches 3-year strategy to crack down on ‘problem firms’

The regulatory body said the initiative will reportedly protect consumers from potential fraud, ‘poor’ treatment and will create a ‘better’ market

The Financial Conduct Authority (FCA) has launched a three-year strategy which will see the recruitment of 80 employees to focus on shutting down “problem firms” which do not meet basic regulatory standards.

The new strategy will see the implementation of resources to prevent serious harm, set higher standards, and promote competition.

Additionally, for the first time, the regulator will also hold itself accountable against published outcomes and performance metrics.

The FCA said the initiative will reportedly protect consumers from potential fraud, “poor” treatment and will create a “better” market.

In the development of the strategy, the FCA has calculated that for every pound spent on its operations, consumers and small businesses benefit by at least £11.

The strategy builds on activities launched last July, when Nikhil Rathi, chief executive of the FCA, committed the regulator to transform the body into a data-led platform that “can face the threats and opportunities of the future”.

Rathi said: “Our new strategy enables the FCA to respond more quickly to the rapidly changing financial services sector. It will give us a foundation to continuously improve for the benefit of our stakeholders, and respond swiftly to economic and geopolitical developments.”

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