The Financial Conduct Authority has outlined its plans to reduce and prevent financial crime as part of its 2023/24 Business Plan released this morning.
The regulator said it continues to look for “innovative” ways of reducing financial crime as it harms confidence and integreity in the UK’s financial markets as well as putting customers’ money at risk.
Its plans include a strengthened authorisations process, improved assessments of regulated firms and more staff to investigate and prosecute offenders.
The regulator said it also plans to continue to develop tools to find scam sites. In 2022 the regulator used machine learning and other tolls to find and remove scams, with hundred of websites taken down and over 1,8000 alerts issued over the year.
It added that its Consumer Hub prevented over £7m being lost to fraudsters in 2022.
Debbie Barton, financial crime prevention expert, at wealth manager Quilter welcomed the details within the business plan, but cautioned that the regulator can only do so much.
She said: “The FCA’s business plan puts the scourge of scams into focus, with the numbers of warnings about potential scams continuing to rise at an alarming rate. Financial scams and fraud soared during the Covid pandemic and unfortunately, despite the best efforts of everyone in the industry, it is difficult to put that genie back in the bottle. The FCA, law enforcement and companies are constantly firefighting as scammers keep popping up in new locations and with increasingly sophisticated and believable schemes.
“It is pleasing, therefore, to see the FCA set out in detail how it will continue to build on its current activities, and make the environment for scammers a difficult one to operate in. Campaigns such as ScamSmart are crucial to help people spot scams early and before any money is lost, and we need to amplify these sorts of initiatives as much as we possibly can. However, the FCA can only do so much. The government has been reliant for too long on financial businesses spotting scams to help protect consumers, however, when they do it is often after the scam has taken place, and thus incredibly difficult to recover the funds stolen.”
Within the 2023/24 Business Plan the FCA also revealed further details of its work to deliver the outcomes of the New Regulatory Framework and Edinburgh Reforms.
The FCA said it would invest over £12m to prepare for the framework, which it said will help support the UK’s wider economic growth and international competitiveness.
The FCA added it will continue to support innovative and high growth firms, including through its Sandbox, Early and High Growth Oversight function.
New cost benefit analysis panels will also be established to support the effectiveness of the regulator’s programme of work.
The full Business Plan can be read online.
Nikhil Rathi, chief executive of the FCA, said: “We set out a bold vision last year of what we wanted the FCA to be, and we are well underway to achieving our objectives thanks to our talented colleagues and the better use of technology and data across our organisation.
“With many consumers across the UK struggling with the cost of living and markets events causing concern, we have put in place vital changes over the past few years which mean we’re better set up to face these challenges.”
The FCA has also published the consultation on its fees and levies for the year ahead.
The regulator said it will freeze minimum and flat rate fees to ease the pressure on the smallest firms.
