Consumer Investments Strategy – 2 Year Update

Two years after developing its new „Consumer Investments Strategy“ which seeks to enhance investor protection in various ways and one year after the first update (see eventid=17901), the Financial Conduct Authority (FCA) has published another follow-up report in this context. Specifically, the FCA summarizes the key accomplishments in terms of regulatory enhancements for the purpose of investor protection during the past year, outlines upcoming regulatory initiatives in that respect within the next 12 months, and briefly discusses long-term plans. The report is primarily addressed at financial market participants possibly to provide an overview of past accomplishments and upcoming regulatory changes.
The key regulatory initiatives planned by the FCA or meanwhile on the way in the next year are as follows (mainly as quoted):
– Implementation of the new Consumer Duty for new and existing products and services by July 2024;
– Implementation of the strengthened financial promotions categorising crypto-assets as ‘Restricted Mass Market Investments’ (see eventid=21585);
– Implementation of the guidance for financial promotions using social media;
– Implementation of a gateway for firms who approve financial promotions (see eventid=22984);
– Continue to work on financial stability, combating money laundering and financial crimes;
– Continue to work on new capital deduction for redress for personal investment firms (see eventid=24156).
Some of the issues, the FCA will be working on in the longrun include among others:
– Together with HM Treasury, work on Advice Guidance Boundary Review, which will ensure that consumers make the right and desired financial decisions.
– Continue key activities listed out in the Compensation Framework Review Feedback.
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The report also provides a brief overview of the consumer investment market today, including statistics on the opening of investment accounts, investments conducted by UK residents, and high-risk investments, to name a few.