The UK Financial Conduct Authority (FCA) says it
now rejects—at first attempt—one in five firms that apply for
authorization in contrast to 1 in 14 last year.
Nikhil Rathi, the Chief Executive Officer of the
financial markets regulator, stated this on Thursday in a draft of the
speech he delivered on
Thursday at the Lord Mayor’s City Banquet at Mansion House.
Rathi disclosed this while speaking on efforts
taken by the regulator to strengthen its duties, including increasing its
manpower.
“We have a greater willingness to take more
legal risk, to intervene earlier, and to test our powers to the limits.
“This has included the first criminal case
against a bank for money laundering failings, securing tens of millions under
our consumer redress powers, and imposing the first account forfeiture order.
“Our gateway is more robust as we have learned
the lessons from independent review. Now 1 in 5 firms are initially rejected
for authorization compared to one in 14 in the previous year.”
Rathi added that despite the FCA’s extra
security and increased workload, the regulatory body has made “huge progress”
on its backlog and plans to improve further on this by investing in automation
technology.
FCA: Consumers and the Cost of Living Crisis
FCA said the COVID-19 pandemic and the Russia-Ukraine war precipitated its challenge with the cost of living in the United Kingdom. With recent global inflation causing energy and
food prices to skyrocket, the cost of living has been on the rise, including in
the UK.
In addition, a survey of 19,000 people it conducted
last week found that more citizens expect to struggle in the coming months. However, the regulator pledged that it remains
“ever more vigilant to actors preying on consumers’ vulnerabilities.”
FCA said it is “intervening at our fastest pace
ever against problematic financial promotions, 8 times more interventions
year-to-date compared to last year.”
FCA’s Recent Actions
In Mid-October, the FCA disclosed that it halted the
operation of 16 contracts for
difference (CFDs) operators.
The regulator said it also placed restrictions
on 17 firms and seven individuals trying to get local investment market
licenses.
The regulator in its fourth Consumer Investments
Data Review published last week also disclosed that it has opened 432
regulatory cases
regarding possible crypto scams or unregistered businesses in the United
Kingdom.
FCA said it observed a 59% increase in inquiries
about cryptocurrency scams between April 1, 2021, and March 31, 2022.
Earlier this week, the markets supervisor also launched a
discussion on how competition
among Big Tech companies in the country’s financial industry could impact consumers.
The regulator, which published a report
examining the potential competitive impacts of Big Tech firms on the payments,
consumer credit, insurance, and deposit-taking sectors in the UK, is collating
responses on the subject until January 2023.
The UK Financial Conduct Authority (FCA) says it
now rejects—at first attempt—one in five firms that apply for
authorization in contrast to 1 in 14 last year.
Nikhil Rathi, the Chief Executive Officer of the
financial markets regulator, stated this on Thursday in a draft of the
speech he delivered on
Thursday at the Lord Mayor’s City Banquet at Mansion House.
Rathi disclosed this while speaking on efforts
taken by the regulator to strengthen its duties, including increasing its
manpower.
“We have a greater willingness to take more
legal risk, to intervene earlier, and to test our powers to the limits.
“This has included the first criminal case
against a bank for money laundering failings, securing tens of millions under
our consumer redress powers, and imposing the first account forfeiture order.
“Our gateway is more robust as we have learned
the lessons from independent review. Now 1 in 5 firms are initially rejected
for authorization compared to one in 14 in the previous year.”
Rathi added that despite the FCA’s extra
security and increased workload, the regulatory body has made “huge progress”
on its backlog and plans to improve further on this by investing in automation
technology.
FCA: Consumers and the Cost of Living Crisis
FCA said the COVID-19 pandemic and the Russia-Ukraine war precipitated its challenge with the cost of living in the United Kingdom. With recent global inflation causing energy and
food prices to skyrocket, the cost of living has been on the rise, including in
the UK.
In addition, a survey of 19,000 people it conducted
last week found that more citizens expect to struggle in the coming months. However, the regulator pledged that it remains
“ever more vigilant to actors preying on consumers’ vulnerabilities.”
FCA said it is “intervening at our fastest pace
ever against problematic financial promotions, 8 times more interventions
year-to-date compared to last year.”
FCA’s Recent Actions
In Mid-October, the FCA disclosed that it halted the
operation of 16 contracts for
difference (CFDs) operators.
The regulator said it also placed restrictions
on 17 firms and seven individuals trying to get local investment market
licenses.
The regulator in its fourth Consumer Investments
Data Review published last week also disclosed that it has opened 432
regulatory cases
regarding possible crypto scams or unregistered businesses in the United
Kingdom.
FCA said it observed a 59% increase in inquiries
about cryptocurrency scams between April 1, 2021, and March 31, 2022.
Earlier this week, the markets supervisor also launched a
discussion on how competition
among Big Tech companies in the country’s financial industry could impact consumers.
The regulator, which published a report
examining the potential competitive impacts of Big Tech firms on the payments,
consumer credit, insurance, and deposit-taking sectors in the UK, is collating
responses on the subject until January 2023.
