UK FCA regulatory priorities report on consumer investments

The UK Financial Conduct Authority (FCA) has published its regulatory priorities report for the consumer investments sector, setting out key priorities for the year ahead. The report is for advisers, wealth managers, investment platforms and other-related consumer investment firms. These regulatory priorities reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations.

The FCA identifies four consumer investments priority areas:

• Building a stronger investment culture—The FCA will focus on firms giving consumers products and services that meet their needs at a fair price. The FCA will help firms prepare for the Consumer Composite Investments (CCI) rules and continue its Advice Guidance Boundary Review (AGBR). The FCA's targeted support policy comes into force in April, and it will publish new proposals for simplifying the advice rules soon.
• Strengthening trust—The FCA will work with firms to ensure strong governance, robust risk systems, and responsible innovation. It will also ensure firms act quickly when risks emerge, stay resilient, and pay redress where due. The FCA will support responsible innovation by helping firms test AI applications and other propositions through its sandbox.
• Securing good consumer outcomes—Firms should monitor outcomes, have clear, fair pricing and give consumers timely information and support. The FCA will consult on clarifying the application of the consumer duty across distribution chains and review feedback on its client categorisation proposals. The FCA will support new channels, with a guide for finfluencers promoting accurate, responsible content.
• Strengthening financial crime controls—Firms need to have robust systems and controls, strengthen surveillance, and enhance their reporting. The FCA will continue partnering with Ofcom and domestic and international bodies to tackle scams and fraud. It will also use its enforcement powers to punish bad actors, including finfluencers who promote fraud and scams.

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