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More support for overseas firms, crypto and start-ups: FCA pledges to support growth under UK Action Plan

The UK Government has released a cross-sectoral Action Plan for regulation. Building on the Chancellor’s Mansion House speech, the plan aims to create a regulatory system that supports economic growth. It includes several pledges from the Financial Conduct Authority and a review of the Financial Ombudsman Service.

Concierge for overseas firms

The Government will establish a “concierge service” for international firms. The service, to be developed with the City of London Corporation, will aim to make it easier for firms to navigate the UK regulatory landscape and broader barriers to entry.

Supporting early-stage firms

The plan includes a package of measures aimed at supporting early-stage innovative firms. This includes the FCA providing pre-application support to all wholesale payments and crypto firms, and issuing more “minded to approve” notices to help firms fundraise. The Government is also considering whether it can update the legislative framework to allow some firms to conduct limited regulated activities within streamlined conditions.

Reviewing the FOS

The Economic Secretary to the Treasury will examine whether the FOS is delivering its role as an impartial dispute resolution service. This will include addressing concerns around whether the FOS sometimes acts as a quasi-regulator. The review is expected to conclude by the summer and may be followed by legislative changes.

Overview of FCA and PRA pledges

FCAProvide a dedicated case officer to every firm in the FCA’s regulatory sandbox
FCAProvide 50% more dedicated supervisors to early and high growth firms to help them navigate the regulatory system and support their growth
FCAExtend pre-application support to all wholesale payments and crypto firms
FCAIndicate more often that the FCA is ‘minded to approve’ start-ups to help them secure funding
FCASimplify mortgage and advice rules to support greater home ownership
FCAReview contactless payment limits, including removing the £100 limit on individual payments
FCAAccelerate a review of capital requirements for specialised trading firms
FCA + PRAHMT will review the FCA’s and PRA’s ‘have regards’ to rationalise them and ensure a focus on their priorities
FCA + PRAReduce regulatory reporting requirements for firms
PRAIn April, the PRA will consult on a matching adjustment investment accelerator aimed at reducing the time between life insurers identifying a productive investment opportunity and making that investment

 

The role of the Financial Ombudsman Service will [...] be reviewed to ensure that it is acting as an impartial service that provides quick and predictable resolutions to disputes – not as a quasi-regulator.

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Tags

uk, fintech, fsma 23 smarter regulatory framework, payments