Fca Business Plan and Outlook 2015/16 - Bovill Briefing
Transcript of Fca Business Plan and Outlook 2015/16 - Bovill Briefing
![Page 1: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/1.jpg)
FCA Business Plan 2015/16
Outlook changeable …
Bovill Briefing
April 2015
Richard Scrivener and Mike Booth
![Page 2: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/2.jpg)
2
Overview
• Continuing common themes
• New(ish) interests
• How the FCA operates
• What do we think?
• What it means for you
![Page 3: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/3.jpg)
Which of these terms is actually taken from the Business Plan?
3
shadow
banking
big data
hacktivists
large back-books
cyber-crime
FAB
VFM concurrency
powers
gatekeepers
in too deep
selling England by
the pound
![Page 4: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/4.jpg)
Medium to long term, continuing risks
• Technology
• Culture
• Back-books
• Pensions
• Consumer credit culture
• Unfair Contract Terms
• SYSC in preventing financial crime
• Rapid house price growth
Outlook
4
promoted
relegated
![Page 5: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/5.jpg)
Key words in this year’s plan
5
![Page 6: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/6.jpg)
• Culture and controls
• Increasing complexity in business models is an issue
• Incentives for staff should drive right behaviour
• Act in the interests of existing, as well as new customers
Continuing common themes
6
“Putting customers at the heart of your business”
![Page 7: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/7.jpg)
• Conflicts of interest and inducements remains an issue
• Risk management not risk avoidance
Continuing common themes
7
![Page 8: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/8.jpg)
• Post-authorisation review of funds due later in 2015
• Asset management market study due next year
Continuing common themes
8
![Page 9: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/9.jpg)
• Vulnerability – link to consumer behaviours
• Pension age
• Ageing population not catered for
• Not computer literate
• Unknown life expectancy and
financial needs
• Decumulation products mis-sold
• Young and in debt
Continuing common themes
9
![Page 10: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/10.jpg)
• Technology
• Market access
• Protection and resilience
• Complexity – business as usual
Continuing common themes
10
![Page 11: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/11.jpg)
• Financial crime – greater focus, especially AML and
ABC
• Remuneration and performance management
remains important
Continuing common themes
11
![Page 12: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/12.jpg)
• Consumer credit – all about affordability
• Flexibility of regulatory resource
Continuing common themes
12
RISK
![Page 13: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/13.jpg)
• Greater focus on pensions
• Reforms
• Limited information to
shop around
• Scams
New(ish) stuff
13
![Page 14: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/14.jpg)
• MMR – post implementation review planned
• Concurrency powers with CMA
New(ish) stuff
14
![Page 15: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/15.jpg)
• Emerging distribution models – market study planned
• Shadow banking – increasing interest
New(ish) stuff
15
![Page 16: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/16.jpg)
• Risk Outlook no longer a separate
document to demonstrate how risk is
directly connected to activities
• One common view across the
organisation on key markets and
sectors
• Markets-led
• Thematic reviews versus market
studies, fewer more focussed
How the FCA operates
16
![Page 17: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/17.jpg)
Market studies vs thematic reviews
17
Market study Thematic review
investigative and analytical forensic and supervisory in focus
industry-wide firm specific
competition and operation compliance and outcomes
information requests and some
visits
desk-based reviews and visits
report with findings and
recommendations
report to industry with good and
poor practice
changes to policy firm-specific actions
rule making s166 and enforcement referrals
![Page 18: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/18.jpg)
• Reorganisation of supervision
• C3 and C4 firms – dropping the distinction
• Introducing Industry Education Programme
• Efficiency and effectiveness review – demonstrating VFM
How the FCA operates
18
![Page 19: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/19.jpg)
Questions?
19
![Page 20: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/20.jpg)
What do we think?
20
“Success is the ability
to go from failure to
failure without losing
your enthusiasm”
![Page 21: Fca Business Plan and Outlook 2015/16 - Bovill Briefing](https://reader033.fdocuments.in/reader033/viewer/2022042818/55b7cbc2bb61eb33758b45e4/html5/thumbnails/21.jpg)
What it means for you
21
• Keep doing everything you’ve been doing over the last year, plus a
bit more …
• Review and improve your processes around
• conflicts
• inducements
• remuneration
• Question your firm’s culture; define it and write it down; how might
you test that everyone shares the right attitude to customers?
• Ensure conduct risk is embedded; make sure it’s tabled at the
Board
• Expect a thematic review …