FCA announces new supervision and authorisation divisions

Supervision Investment, Wholesale and Specialists will be led by Tracey McDermott. Linda Woodall will head up the Retail and Authorisations division as acting Director.

The integration of supervision and authorisation was announced as part of the new FCA strategy in December 2014.

In its Business Plan for 2015/16, the FCA said it would:

- examine whether the sales practices of pension providers have improved since the 2014 review into annuities sales
- look at how firms were helping consumers make the right choice in relation to their pension given the options soon to be available to people as part of the Government’s pensions reforms
- look at how the mortgage market is working, in particular any barriers to competition and the ability of consumers to switch provider or access credit
- implement and review the consumer credit regime and the firms and practices within the sector
- monitor developments in technology and how that affects firms and consumers, including a market study on the use of Big Data in the insurance market

From April, powers to enforce against unlawful anti-competitive behaviour in the financial services industry concurrent with the Competition and Markets Authority come into effect.

The Business Plan also included the FCA’s Risk Outlook which sets out the top seven high-level risks the financial services sector should consider in the coming years.

These include technology developments and its impact on firms, consumers and regulators; how poor culture and control continues to threaten market integrity; impact of large back-books on how firms deal with existing customers; and consumer outcomes for pensions and retirement income products.

Specifically on consumer credit and complex terms and conditions the FCA will monitor poor culture and practice in consumer credit affordability assessments that could result in unaffordable debt, and the impact of the Consumer Rights Act coming into force in the autumn.

A new area of focus includes firms’ systems and controls in relation to financial crime.

Commenting on the Business Plan, Martin Wheatley, Chief Executive of the FCA, said:

"This is an important day in terms of setting out our priorities for the year ahead and also giving firms greater clarity on how they can expect to work with us.

"The Business Plan is set against the backdrop of the most fundamental changes to pension policy we have seen in over a generation. Therefore we will be looking at how the market is working and in particular, how the industry is adapting to this considerable change and what it means for consumers. This is exactly the sort of work that is expected of the FCA, and I believe is a fundamental benefit to consumers and industry."