MyComplianceOffice Blog

The countdown is on!  With July 2023 coming up fast, is your firm prepared for the UK Financial Conduct Authority's new Consumer Duty?

As the final deadline rapidly approaches, the FCA continues to release guidance to firms. In May the agency posted a  multi-firm review of where Consumer Duty implementation plans stand to date and Dear CEO Letters with guidance specific to industry sectors. In June, with just one month to go, the agency provided a list of ten questions that firms should be asking themselves to ensure they are on track and making the most of the remaining time.  

The European Market Abuse Regulations (MAR) have been in effect since July of 2016. Recent priorities published by regulators in the UK and across Europe demonstrate that MAR is hardly old news, remaining a consistent priority since its inception. And regulatory enforcement shows that even six years in, firms are still struggling to stay compliant with MAR regulations and the flow of material nonpublic information (MNPI) across their organizations.

On 11 January 2023, the Financial Conduct Authority (FCA) published a "Dear CEO" letter to wholesale broker firms, highlighting key risks and drivers along with their supervisory focus for the next two years. The letter places particular emphasis on the Senior Managers and Certification Regime (SMCR), market abuse, personal account dealing-and the need for firms to have robust systems and controls in place to effectively manage and evidence these risks. 

With the end-February 2023 deadline for next steps looming, time is of the essence for senior executives and board members to review the current state of compliance in these areas and develop an action plan to fill in the gaps. 

The Financial Conduct Authority (FCA) regulates over 58,000 financial services firms and financial markets in the UK. To do this effectively, the authority needs timely and accurate data from firms to identify malpractice and take appropriate action.

This is why the FCA’s reporting requirements exist—to ensure it has the information it needs to perform its role. It’s also why the FCA levies tough penalties on firms that fail to meet their reporting obligations.

The UK Financial Conduct Authority (FCA) 's 2021-22 Business Plan was published on 15 July 2021 and it sends an important message for firms and the market of the FCA going forward approach to enforcement actions.

It is clear that the FCA intends to be more aggressive and take an increasingly assertive approach in its enforcement activity in the coming year and innovate to tackle challenges yet to come in the future.