The Financial Conduct Authority has given shape to a new five-year plan aimed at reducing regulatory costs and “improving the boundaries between advice and guidance”.
The financial regulator's strategy has four main themes: becoming a more efficient and effective regulator, tackling financial crime, building consumer resilience, and supporting economic growth and innovation. 
The plans were announced by FCA chief operating officer Emily Shepherd at TheCityUK national conference in Birmingham.
But the announcement came as a cross-party group of MPs and MPs yesterday slammed the FCA as “incompetent”.
Politicians are calling for an overhaul of the regulator, saying watchdogs too often fail to carry out their oversight functions properly.
Shepherd touched on economic growth and innovation in his speech, saying regulators “cannot grow the economy by themselves, but there are ways to foster that growth.”
The FCA aims to reduce regulatory costs and says domestic and international partnerships will be “key to shaping this”.
It will also support innovation to foster a “more productive and competitive sector”, building on existing work such as a regulatory sandbox to test new products.
“Our AI Lab will help companies overcome challenges in building and implementing AI solutions, while supporting safe and responsible development,” said Shepherd.
He pointed out that the agency will also facilitate investment in the real economy, including dissolving boundaries between advice and guidance.
“We have reformed the public market through changes to listing rules, introduced greater freedom in how asset managers pay for investment research, and proposed an open offering and enrollment system to replace the current prospectus system. “We plan to improve individuals’ access to the bond market,” she added.
In his speech, Shepherd emphasized that growth in this sector is “stronger and more sustainable when it is supported by healthy competition between companies, when there is consumer trust, and when there is integrity in the market.” .
The FCA is focused on consumer resilience and plans to ensure consumers have access to and use the right products and services with confidence.
Using pensions as an example, Mr Shepherd said the FCA was “committed to creating a clearer line and clearer distinction between advice and guidance to help consumers understand their choices”.
“Ultimately, we aim to deepen consumer understanding and build trust in a mutually beneficial manner,” she added.
Finally, Mr. Sheppard touched on financial crime, which he said “harms consumers and businesses and undermines confidence in the financial system.”
The FCA says its current strategy on financial crime is delivering good results, but it will “re-intensify its partnership work and look internationally to achieve further step change on the prevalence of financial crime.” ” is planned.
He added: “We have no intention of undermining Britain's proud high standards.” Financial crime not only harms consumers, it undermines economic growth, and it is in our interest to fight it. ”
Mr Shepherd also said the FCA “welcomes ideas on how it can tackle financial crime more efficiently and appropriately, while maintaining the standards necessary to protect consumers and ensure confidence in the system.” “I will.”
Finance Minister Rachel Reeves told the Financial Conduct Authority earlier this month that there was a need to “build further momentum” to ease regulation to help financial institutions drive growth.
In a letter to regulators dated November 14, Finance Minister Rachel Reeves said: “We also need to consider how we enable accredited businesses and customers to take informed and responsible risk-taking. “There are problems,” he said, adding that despite moves to eliminate bureaucracy, “there are still problems.” More needs to be done to build momentum. ”
