Supervision Investment, Wholesale and Specialists will be led by Tracey McDermott. Linda Woodall will head up the Retail and Authorisations division as acting Director.
In its Business Plan, the FCA has also set out the key areas of work it will undertake in the upcoming financial year.
It will place further focus on consumer outcomes for pensions and retirement income products following the reforms, including whether the sales practices of pension providers have improved since the 2014 review into annuities sales, and how firms are helping consumers make the right choice in relation to their pension.
It will also 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.
Other aims include the implementation and review of the consumer credit regime and the firms and practices within the sector; to take forward the announced wholesale market study into competition in investment and corporate banking; and to 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.
To implement the new divisions, increase employment and invest in technology, the FCA predict annual expenditure to increase by £27m to £479m.
The Business Plan also includes the FCA’s Risk Outlook which sets out the top seven high-level risks the financial services sector should consider in the coming years, including how poor culture and control continues to threaten market integrity, and the impact of large back-books on how firms deal with existing customers.
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.
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."
