Annual Public Meeting 2023: Responses to unanswered questions [pdf]

Following the annual public meeting of the Financial Conduct Authority (FCA) on October 4, 2023, the regulator has published a statement addressing those questions that weren’t answered by the FCA during the meeting. These questions address, among others, the new Consumer Duty, the use of AI by supervised firms, the FCA’s enforcement policies, investor protection, whistleblowing, and many others. As the list of questions and answers is VERY long, we refrain from listing them all individually at this point. Four of the most interesting questions are noted below. For the answers, please refer to the statement:
1. According to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (specifically 28(9)), a provider of electronic verification of identity can be relied upon if “considered to be sufficiently extensive, reliable, accurate, independent of the customer”. What is the FCA’s stance on reliance by regulated entities on third-party companies for AML (Anti Money Laundering) and KYC verifications? (page 1/2)
2. What is the take of the FCA on the use of blockchain and distributed ledger technology to automate processes for AML and KYC client onboarding? (page 2)
3. In light of the consumer duty, if firms had access to technology to speed up complaints‘ response times, and ensure decisions were in line with the ombudsman, would you encourage them to use it? (page 15)
4. Does the FCA recognize the risk of regulatory capture; and if so, what does the FCA do to ensure it does not succumb to it? (page 25)