Britain’s financial watchdog has laid out its plans for next year, prioritising support for the government with Brexit and assistance to vulnerable consumers.
The Financial Conduct Authority said it would allocate £2.5mln of its £527mln annual budget to a Brexit task force as part of its business plan for fiscal year 2017/18, published today alongside a ‘mission’ statement.
Andrew Bailey, the chief executive of the FCA , said: “Leaving the European Union inevitably creates a higher risk of disruption to our business plan priorities. So it is particularly important that we retain the flexibility to respond swiftly should we need to review them further.”
The FCA said the funds will be used to ensure a smooth transition of rules after Brexit and to guarantee that financial regulation continues to operate without interruption.
In setting out principles for advising the government on EU withdrawal negotiations, the regulator added that access to EU markets and people will be essential for maintaining healthy competition.
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The FCA will also help consumers who were mis-sold payment protection insurance. Banks have paid out £26.2bn in PPI compensation so far.
The regulator recently extended its deadline for remaining PPI claims to August 2019 from a previous June 2019. Lloyds Banking Group plc (LON:LLOY) subsequently put aside a further £350mln provision for claims.
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In its business plan, the FCA said it will work on a campaign to ensure consumers are made aware of the time frame.
Other key areas of focus include addressing high-cost credit and overdrafts, and considering the issue of long-term savings and retirement outcomes.
FCA's mission statement...
Alongside the business plan, the FCA released a 36-page mission statement, outlining its responsibility to the industry.
"The mission gives firms and consumers greater clarity about how and why we prioritise, protect and intervene in financial markets," Bailey said.
"When we make regulatory judgements, we will be more transparent about how we reached them."
Bailey, previously Bank of England Deputy Governor, was appointed chief executive of the FCA in July.
He took up the role a year after former chief Martin Wheatley was ousted by then Chancellor of the Exchequer George Osborne following a number of crises at the regulator. In 2014 the FCA’s handling of a press briefing on the insurance industry sent shares in the sector plummeting.