The FCA's role and priorities are to be enhanced as stated by Sarah Pritchard, FCA executive director for Markets, at an event named The Future of UK Financial Regulation Summit earlier this month. She said her Majesty's Treasury is consulting over strengthening the regulatory body further with significant new rulemaking powers.
The Future Regulatory Framework (FRF) is a critical opportunity to work on the new regulatory system to enhance the UK capital market's attractiveness.
Markets CEO Nikhil Rathi worked out on the change visions last July and expressed the future of FCA should be more assertive, adaptive and innovative. He stated the revamped FCA should protect consumers and simultaneously promote market integrity.
Innovation is being embraced and the Regulatory Sandbox is to be made permanent in the FCA to ensure new market entrants can test their ideas. Last October, rules were set for a new type of fund for long-term investments and it was coined as a Long Term Asset Fund. A series of rule changes were later confirmed to the listings regime.
In the past, the FCA has taken significant steps in the improvement of its functioning for the UK listing regimes and it is simultaneously working to support the Wholesale Markets Review of the government. Major opportunities are now witnessed in the improvement of rules applying to UK-domiciled funds.
The importance of data is also being seriously looked at in the current financial markets and further work has been announced to deal with credit rating data, benchmarks, trading data and more.
The government has committed to achieving a net-zero economy by the year 2050 and it is expected that sustainable finance may grow gradually as an area of interest amid the world transition to a zero-carbon future.
FCA earlier published an ESG strategy revealing support to positive change in the financial segment with the help of government and rules as well. The sustainable investment opportunities are on the card and many investors look for ensuring the portfolio reflects values on the entire sustainability topics. Firms are required to have a credible strategy to gain the trust of investors.
Meanwhile, steps have been taken to improve transparency and relationship with the international partners to continue delivering consistent global standards. Investors will be assisted in making decisions and companies will be encouraged to strengthen climate transition plans.
Later this year, the overarching consumer and markets strategies are expected to be published and this would set the priorities and focus over the near future.
Apart from all these, the regulatory board would continue building a team of people with job vacancies.