FCA Consult on Mission

The Financial Conduct Authority (FCA) has launched a consultation on its Mission, which is designed to provide a guiding set of principles around the strategic choices the FCA makes. It will inform the FCA’s strategy and day-to-day work over the coming years. On 1 April 2013, the FCA became responsible for the conduct and supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA). However, with finite resources and objectives set by Parliament, its overarching strategic objective is to ensure that relevant markets function well. Supporting this are three operational objectives: securing an appropriate degree of protection for consumers; protecting and enhancing the integrity of the UK financial system; and promoting effective competition in the interests of consumers. So, clarity of objectives and focussing of efforts is key. As is the reasoning behind its work and the tools it uses to do it. Consequently, the FCA will be seeking engagement across the breadth of its stakeholders towards developing its Mission. Commenting on their efforts Andrew Bailey, FCA Chief Executive said, “Establishing and embedding a clear mission for the FCA is critical to our success, both as a regulator and to UK financial services as a whole. Our Mission will set out a framework within which we prioritise our work, ensuring we focus our resources in the right places. This will improve accountability and transparency of how and why we make the choices that we do. The Mission will only be a success if our stakeholders engage with us through this consultation process. We want this to be a very open process. Out of it, we hope that we can set out a clear path ahead for financial conduct regulation in the UK.” Key themes that the FCA will be consulting on include: • Protecting consumers – in an environment where consumers are increasingly expected to take responsibility for their own financial decisions, what is the right level of consumer protection; and how does the FCA balance the responsibilities of firms and consumers? • Vulnerable consumers – should the FCA prioritise the protection of vulnerable consumers and if so how? • Delivering consumer redress – what should the role of the FCA be in redress schemes, for example in dealing with activity outside the FCA’s remit? • When the FCA intervenes – how the FCA identifies harm and how it decides which approach to take to address it; and how can the FCA be clearer for firms, consumers and stakeholders on what it is doing and why? • The scope of regulation – explaining the remit the FCA has for taking action and the circumstances in which the FCA may intervene with regard to unregulated activities; • The interaction between regulation and public policy – explaining this interaction using examples including access to financial services and price discrimination; • Competition, supervision and enforcement – providing clarity and seeking feedback on the FCA’s current approach to using its different regulatory powers and tools; • FCA Handbook – seeking suggestions on a proposed review of the FCA Handbook which sets out the rules for firms. See: