UK FCA speech on supporting economic growth

The UK Financial Conduct Authority (FCA) has published a speech by Nikhil Rathi, chief executive, on supporting economic growth. Mr Rathi notes that from 27 February, the FCA no longer expects firms to have a consumer duty board champion, meaning boards can decide for themselves whether or not to have one. To reflect the same, the FCA has also updated its webpage on consumer duty information for firms. Separately, the FCA will move efficiently on the 50 or so growth proposals it made to the Prime Minister its response to the call to support growth. The FCA will also focus on their joint Call for Input with the Financial Ombudsman Service published in November 2024 on how complaints and redress mechanisms work, by reviewing the framework to ensure even tighter alignment, and clearer early warnings when significant issues are emerging.

The FCA is also aiming for fewer large-scale changes in their next five-year strategy, but there is clearly debate to be had around the speed of change as some in the industry argue that the FCA were going too fast, and some not fast enough. As the FCA works with the Government on their financial and professional services strategy, the FCA has been asked for bold thinking around articulation of the Government's risk appetite, particularly in relation to consumer harm. Mr Rathi states that the FCA would value metrics against which the FCA can be held to account and which can help give firms the predictability and certainty they need. Mr Rathi encourages industry engagement in this debate too.

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