The Financial Conduct Authority (FCA) wants to intervene in “real-time more often” to prevent harm to consumers and market integrity.

This is bold statement is contained in the regulator’s business plan for 2021/2022 published today.

It is the first annual plan the FCA has published under the reign of chief executive Nikhil Rathi who joined last October.

The plan reveals the FCA will shortly consult on proposals to streamline decisions about authorisation and specific supervisory and enforcement actions.

The regulator intends to change the balance of decisions taken by the FCA executive and regulatory decisions committee.

These measures are part of a broader shift at the regulator as it focuses on bogus financial promotions and the culture of firms.

In a statement on its role the FCA says it will be accountable for its progress on:

• • setting the bar high to support market integrity and sustainable innovation, ensuring firms start with high standards and maintain them
  • using new approaches to find issues and harm faster; £120m will be invested in the data strategy over the next 3 years
  • tackling misconduct to maintain trust and integrity, being proactive at the boundaries of the perimeter
  • enabling consumers to make informed financial decisions
  • investing in our people, reshaping our culture and working with others so we achieve more

Commenting on the plan, Rathi says: “The FCA must continue to become a forward-looking, proactive regulator. One that is tough, assertive, confident, decisive, agile. “One that acts, acts fast—and where we can’t act, engages enthusiastically with those who can.

“Continuing to be more innovative, assertive and adaptive.”

The FCA also announced today that it will begin a review of aspects of the rules on the scope and coverage of Financial Service Compensation Scheme (FSCS) payouts, for specific regulated activities.

The plan says it will create a ‘consumer investment coordination group’ with the FSCS, the Financial Ombudsman Service and the Money and Pension Service (MaPS).

It adds the FCA will also gather information on sharp practices so it can better target interventions.

In parallel, it will begin a review of aspects of rules on the scope and coverage of FSCS compensation payouts, for specific regulated activities.

Rathi added: “Over the next 18 months you will continue to see an FCA that looks and feels even more different. One that operates differently, partners differently, and communicates differently.

“One that delivers market integrity and delivers for the consumers that we serve. One that is not only purposeful but that is fit for purpose.

“There is a lot of work to do. And I am confident that we have the right strategy, the right people and the right ambition to do it.”

FCA priorities for coming year

In consumer markets priorities include:

• strengthening rules on financial promotions to protect consumers in relation to investments
• continuing to improve standards of pension advice
• a consumer campaign on scams and high-risk investments
• progressing proposals for a new Consumer Duty to raise standards in firms’ treatment of consumers

In wholesale markets the focus includes:

• following the UK’s exit from the EU, continuing to develop plans to make primary and secondary markets work better while maintaining high standards
• continuing to support the smooth transition away from sterling Libor to alternative risk-free rates

It also sets out a number of cross-cutting priorities including:

• using the FCA’s authority and influence to work with partners to help drive down the incidence and impact of fraud
• improving diversity and inclusion, both at the FCA and in regulated firms
• supporting environmental goals by adapting the regulatory framework to enable a market-based transition to net-zero carbon emissions