The FCA has announced that Nikhil Rathi, the FCA Chief Executive, has written to the Prime Minister setting out the significant work it already has underway and how it will go further to support growth. Rathi stated that the FCA welcomed the Government’s letter of 24th December 2024, along with the Chancellor’s recommendations on growth. The letter opens with a list of initiatives that the FCA is already undertaking in its work on growth, and states that growth will be a cornerstone of its strategy, through to 2030.
In setting out what the letter describes as significant work in train for 2025, the FCA has also set out areas where further Government action could enhance collective efforts.
- Unlocking capital investment and liquidity, including reducing conduct requirements for wholesale insurers.
- Accelerating digital innovation to enhance productivity, including setting new digital service standards such as requiring firms to accept electronic verification of death to speed up bereavement claims in insurance.
- Reducing the regulatory burden, including:
- streamlining the FCA handbook following industry input on rules which could be removed or simplified;
- continuing to reduce reporting burdens for firms;
- making the Senior Managers and Certification Regime more flexible;
- removing the need for a Consumer Duty Board Champion now that the Consumer Duty is in effect;
- ensuring future consultations on consumer protection ask if the Consumer Duty is sufficient rather than new rules; and
- reviewing the proportionality of reporting requirements and removing redundant returns, initially expected to benefit 16,000 firms.
- Making it easier for firms to start up and grow.
- Improving exports and inward investment.
- Certainty and predictability.