Keneth Underhill, Director of ICSR, addressed MGAA members in a webinar on 29th April looking at the 2020/1 FCA Business Plan and considering what the reality means for financial services firms, using previous plans and outcomes as examples.
Watch The Webinar
Thank you to everyone who attended. Below are the answers to the 3 Poll questions we asked:
Poll 1: Which elements of the FCA plan do you CURRENTLY expect to be most time consuming for your firm?
- Brexit (31%)
- Climate Change risk (0%)
- Innovation and technology (3%)
- Operational Resilience (16%)
- Financial Crime including fraud (4%)
- Culture – purpose, leadership, approach to rewarding, managing people and governance (24%)
- Distribution chains & fair value (16%)
- Vulnerable customers (5%)
- Access for customers with special needs (0%)
Poll 2: What stage would you say your firm is at with your approach to operational resilience? (78 responses)
- Not yet started (6%)
- Planning (36%)
- Formed a team and set the scope (32%)
- Started mapping risks (26%)
Poll 3: Which elements of the FCA plan do you NOW expect to be most time consuming for your firm?
- Brexit (4%)
- Climate change risk (1%)
- Innovation and technology (4%)
- Operational resilience (23%)
- Financial crime including fraud (0%)
- Culture (35%)
- Distribution chains & fair value (13%)
- Vulnerable customers (4%)
- Access for customers with special needs (0%)
- Covid-19 response (16%)
Agenda:
The FCA has identified the following as being areas which it will focus on that have an impact across the sectors it regulates, and which have an impact on the insurance market among others. These are:
- Brexit – which needs no introduction
- Climate Change – how the financial services sector will need to adapt to manage the risks that climate change poses.
- Innovation and Technology – primarily a focus on how the FCA will use technology to better and more efficiently regulate the market but also a look at how firms will need to adapt to new technologies and use them safely, appropriately and ethically.
- Operational Resilience – a roll out of the final Policy Statements currently in consultation designed to ensure the resilience of firms’ important business services by requiring them to invest appropriately to reduce the risk of harm to customers.
- Financial Crime – the roll out of changes to how the FCA will reduce financial crime with an intended consequence of increasing enforcement action particularly where there is money laundering, but also fraud.
- Culture – a continuation of the work already underway with a focus on the 4 key drivers of culture (purpose, leadership, approach to rewarding and managing people and governance) with a specific mention for solo regulated firms.
Learning Objectives
Members will have a clear understanding of what the 2020/1 FCA Business Plan means for their firm and the actions they will need to take to begin planning within their Regulatory and Compliance teams and ensure their business is prepared for any likely actions, information requests and changes that are implemented.