Duty calls: Future-proofing finance for everyone

The Financial Conduct Authority (FCA) has provided an update on its key achievements and milestones reached over the past year, highlighting a range of initiatives and actions aimed at improving consumer protection, tackling online harms, and promoting competition and positive change in the financial services sector. The key achievements and milestones are briefly described below; for all of them, please refer to the original press statement.
One of the key developments over the past year was the introduction of the Consumer Duty, a new initiative aimed at enhancing consumer protection in the financial services sector. The Duty is intended to ensure that financial firms prioritize the interests of their customers and provide products and services that meet their clients‘ needs. In this context, the FCA has taken action against various insurers who have been providing poor value products, and has published guidance for insurance firms on how to support customers who are experiencing financial difficulty. This guidance is intended to help insurers provide the assistance and resources that their customers need to overcome financial challenges and make informed decisions about their insurance coverage, particularly in times of tightened economic resources.
In addition to the Consumer Duty, the FCA has been active in tackling online harms. The Authority has introduced screening checks for marketing by unregulated firms and implemented new rules for cryptoassets. These measures are intended to protect consumers from potential scams and fraudulent activities in the digital realm. The FCA has also taken enforcement action against firms and individuals who have violated its rules and regulations, resulting in fines and sanctions being imposed on those who have engaged in misconduct.
The FCA has also focused on setting higher standards in the financial services sector. The organization has evaluated rules to improve the overdraft market and addressed low rates on savings accounts. These efforts were intended to further protect consumers and to ensure that they can participate in the recent increase in the UK base rate.
Promoting competition and positive change was another key focus for the FCA. The Authority has introduced a new objective to promote competitiveness and long-term growth in the financial services sector. It has also implemented sustainability disclosure requirements and proposed reforms to the UK listing regime. These measures are intended to encourage innovation and investment in the financial services sector, while also ensuring that firms operate in a responsible and sustainable manner.
The FCA has also taken action under its competition powers and has published papers on the use of artificial intelligence (AI) and credit information. These papers explore the potential benefits and risks of using AI in financial services, and provide guidance on how firms can use AI in a responsible and ethical manner. The FCA has also proposed reforms to the credit information market aimed at improving transparency and fairness for consumers by enabling individuals subject to credit information to dispute wrongful information and to have access to their own information at no cost.
Finally, the FCA has taken action to investigate competition issues among rating and benchmark providers to ensure fair access at reasonable prices for data users such as fund managers.