With a record number of criminal charges laid against individuals, double the number of institutions stripped of approval, and 98% of cases assessed within statutory deadlines, the FCA’s annual report seeks to present a picture of a robust and efficient regulator in action. Staff numbers and operating costs are up sharply – but total fines collected are down to £35.3m ($46.4m)  from £212.6m ($279.8m) the previous year.

The report is the first since the introduction of Consumer Duty and since the FCA was enabled to replace EU rules with regulations it says are “more tailored to UK markets.” Chief executive Nikhil Rathi said: “We are increasingly clear and confident of what we can do and what we can’t. Like any ecosystem, there are multiple actors in the financial services sector. Some, like ourselves, have a bigger role to play than others. But each must do its bit for the sector to succeed.

“We are fully committed to both supporting and balancing the different needs of consumers, businesses, and the wider economy, enabling all to flourish.”

Compliance and agility

Chair Ashley Alder added: “The Board is acutely aware of the FCA’s responsibility to shape and implement regulation within an unusually uncertain and fastmoving economic and geopolitical environment.”

Both emphasized the need for balance between the need for compliance and the requirement for agility to compete. Rathi went as far as to say: “If we want the UK to maintain its international competitive edge, then we need to be bold and accept that we will not, nor should we try to, stop every failure.”

The regulator has also completed the biggest reform to UK listings rules in 30 years. Other highlights from the report include:

• doubling of firm authorization cancellations to 1,261;
• interventions against 34 firms, up 68% year-on-year;
• 21 people charged with financial crime offences, the highest number the FCA has ever made in a single year;
• intervention with almost 100 lenders to make sure they were supporting borrowers in financial difficulty;
• introduction of new rules to ensure crypto promotions are clear to consumers;
• creation of a permanent digital sandbox to help firms’ product development.

The full report is available to download from the FCA website.