The Financial Conduct Authority has committed to “driving up standards” in relation to charges and product value on pension savings.
In its 2024-25 business plan, published today (March 19), the regulator said it will also review firms’ treatment of vulnerable customers.
The FCA said it will carry out multi-firm work and market studies across different sectors in a bid to improve standards.
As an example, it said: “We will look at unit-linked pensions and long-term savings products to test the transparency of charges across value chains, how firms assess overall product value and their response where they identify unfair value.
“Our multi-firm work will also look at how swiftly the insurance industry responds to claims, including where customers are more likely to show characteristics of vulnerability.”
The business plan sets out three objectives for the year ahead: to protect consumers, protect the integrity of the UK financial system and to promote effective competition in the interests of consumers.
An additional objective is to make it easier for the UK economy to be more competitive internationally.
Nikhil Rathi, FCA chief executive, said: “We’ve already made significant progress in delivering against the bold vision we set out in our strategy two years ago, including the game-changing introduction of the consumer duty and proposing the most far-reaching reforms to wholesale market regulation and the listing regime in decades.
“We remain resolute in supporting the vital role the financial sector plays in the UK’s long-term economic growth, embracing the potential benefits that technology presents both for us and the firms we regulate, while also continuing to protect consumers and ensure market integrity.”
The regulator also said it will have grown its workforce to 5,000 people by the end of this month, a move it said is necessary to meet the demands of its growing remit.
Investments and funding
Over the next year, the FCA plans on investing £1.9mn in its joint work with the government on the advice boundary review.
The FCA said it will will publish a response following last year’s advice guidance boundary review discussion paper.
"This will set out options for future legislative and regulatory reform to enable consumers to have access to the help and guidance they need, at a cost they can afford, to make informed decisions,' the regulator said.
Elsewhere, a further £2mn will go towards new regulations to ensure businesses and people have access to cash and monitoring of bank branch closures.
The regulator's annual funding requirement is expected to rise by more than 10 per cent to £755mn, but this figure will be formally set in June.
Of this funding requirement, around £35mn is expected to come from penalties.
The regulator's ongoing regulatory activities (ORA) budget is expected to increase by 8.7 per cent (£58.1mn).
The FCA added that the ORA budget also includes new charges to reflect changes to its responsibilities for consumer duty and the financial promotions regime.
