UK FCA to hire 80 more staff as it cracks down on problem firms
Welcome back to the Tribe! In this post we dive into the recent UK FCA press release!
Nothing should be considered investment or financial advice. Enjoy the ride!
An announcement by the UK’s Financial Conduct Authority (FCA) shows that the body has launched a three-year strategy to enhance outcomes for consumers. This measure includes an aggressive clampdown on firms that fail to meet the authority’s standards.
FCA Press Release
The FCA has launched a brand new strategy to boost outcomes for consumers and in markets throughout the United Kingdom.
As the FCA’s remit is broad and growing, the three-year strategy prioritizes resources to stop serious harm, set higher standards, and promote competition. The regulator also will, for a first time ever, hold itself accountable against published outcomes and performance metrics.
A key focus of the strategy is shutting down problem firms, which don’t meet basic regulatory standards. The FCA is recruiting 80 employees to figure out the initiative, which is able to protect consumers from potential fraud, and poor treatment and make a far better market in the end.
In the development of the strategy, the FCA has calculated that for each pound spent on its operations, consumers and smaller businesses will benefit by at least £11. The regulator has also considered the rising cost of living, which could drive greater demand for credit products and lead consumers to approach things in brand new ways in order to manage and make more money. The FCA still work closely with the United Kingdom, it’s Government and the Bank of England in response to the war in Ukraine.
The strategy builds on activities launched last July, when Nikhil Rathi, Chief Executive of the Financial Conduct Authority, committed the regulator to become more innovative, assertive, and adaptive and transform the FCA into a data-led platform which will face the threats and opportunities in the long run.
This approach led to the FCA reforming the overall insurance market, saving consumers an expected £4.2bn over 10 years; leading the transition from LIBOR; helping small businesses claim £1.3bn against business interruption insurance cover; bringing its first-ever criminal prosecution under anti-money laundering regulations, with NatWest fined £264m; and protecting consumers from scams by preventing unauthorized firms from advertising financial products on Google.
Nikhil Rathi said:
“Our new strategy enables the FCA to respond more quickly to the rapidly changing financial services sector. It will give us a foundation to continuously improve for the benefit of our stakeholders, and respond swiftly to economic and geopolitical developments.”
The FCA is among one of many regulators worldwide in charge of crypto companies, and this release comes days after the Temporary Registration Regime, which allowed them to work within the United Kingdom without full registration, ended. The firms had until April 1 to get full registration, though a few have temporarily been permitted to continue with temporary registration.
Responding to the press release, Emma McInnes, the worldwide head of monetary services at research company YouGov, said in an interview:
“This leads to questions being raised about whether these companies will be able to continue operating in the U.K. market, and what happens to consumer crypto assets currently held by consumers with these companies,”
She further added that;
“We have already seen some companies moving their crypto services operations from the U.K. to other markets, to ensure they can continue offering crypto services to Britons but from outside of the new U.K. regulatory regime.”
The UK continues its drive to set the pace in crypto regulation in the EU and transform into its dream of being the main crypto hub. This comes despite anti-industry regulations proposed by the European Union and the United State’s slowness to solidify it’s comprehensive crypto regulation.
Other News – FTX Acquires Stake In IEX
FTX has acquired a stake in US regulated stock exchange platform IEX. The IEX Group controls the exchange. Neither party has disclosed any financial details of the investment but some sources have surmised that the deal could be north of $100 million. CEO Sam Bankman-Fried said the move is strategic as the vision of both companies aligns.
UK FCA News
Thanks for reading our post on the UK FCA!
Make sure to follow our Twitter to stay up-to-date on all things crypto!