A full in-tray for the next FCA Chair

Ashley Alder has been confirmed as the next Chair of the Financial Conduct Authority, although he does not take up his new role until January 2023. What will the regulatory landscape look like when he starts?

The FCA’s full agenda is likely to become even fuller when the forthcoming Financial Services and Markets Bill starts to take effect. Although the text of the legislation has not been published yet, it should be close to completing its journey through Parliament by early 2023. The law is expected to hand the FCA considerable rule-making powers that have been brought back from the EU.

One important area will be the regulation of wholesale markets. The FCA has already fired the starting gun on reform there with a consultation paper aimed at improving equity capital markets. This is the first time we have seen draft rules on what divergence from the EU might look like in this important area for financial services in the UK.

Another important topic is sustainable finance. Although the FCA has delayed a discussion paper on disclosure requirements, we expect to see more activity from the UK regulators in the autumn and into next year as they aim to keep up with ESG developments in the EU.

Consumer protectionconsumer duty” by the end of this month. This is expected to confirm that financial services firms have until end-April 2023 to implement the new regime.

will be high on the agenda. The FCA is under a statutory obligation to finalise its consultation on a “

And all of this must be achieved while the FCA is implementing a transformation programme, measuring progress against a three-year strategy, and continuing to deal with resourcing problems (not to mention strikes) which have led many to see delays in processes such as the approval of senior managers. Mr Alder can expect a full in-tray from day one.