FCA Business Plan 2021/22

Updated: Aug 10, 2021

The FCA’s role is to protect consumers from financial shock and fraud from firms, to ensure the financial services market operates in an honest and lawful manner, and to support economic growth by encouraging a healthy and competitive market amongst financial businesses.


The fintech industry can be extremely competitive and dynamic. It is currently booming with start-ups and scale-ups, all promising to provide affordable and valuable financial services to their customers or an over-simplified access to a financial service. Which is why there is a strong need for fintech regulation and authorisation by the authorities, to ensure consumers are protected and the financial market operates lawfully and with integrity.


The need for change and adaptation of the FCA’s regulations and policies stems from many notable events taking place throughout time, such as the pandemic, digitalisation, and Brexit. The need for continuous improvement and advancement in regulation and compliance is crucial in the financial world as it is ever changing.


The FCA business plan for the year focuses on a few key subjects that apply to Fintech firms:

  • Ensuring consumer credit markets work effectively

  • Making payments safe

  • Delivering fair value

  • The new Consumer Duty

  • Effective regulation of market abuse and financial crime prevention

  • Financial and Operational resilience of firms as well as Inclusion practices.

  • Environmental, Social & Governance



  • Ensuring consumer credit markets work effectively


The FCA’s aim is to ensure that consumers have access to affordable credit as well as make informed decisions when looking for products that will solve their borrowing needs. The main objective is that consumers are in total control of their finances and firms provide credit products and services tailored to the consumer’s needs.


The reduced number of complaints made due to harmful credit practices and due to difficulty in repaying credit loans, will be key indicators for the FCA of credit markets working well and up to standards.


The outcomes of this objective when implemented by fintechs will provide a safety net for borrowers and ensure financial inclusion, by monitoring the support firms provide to consumers in financial difficulty. The FCA will also review its approach to debt advice rules communicated to firms and raise awareness of high-cost credit to prevent firms from exploiting vulnerable consumers who will surely be unable to repay their debt. Lastly, a considerable amount of information regarding credit will be constantly reviewed and revised to ensure lenders provide this accurate and relevant information to potential consumers.


  • Making payments safe


The aim of this regulation is to protect consumers and their funds from market instability and ensure that cash is available to vulnerable groups who rely on it, and that smaller businesses have access to various payment options and financial services.


The FCA will closely supervise firms both to identify the ones that are at risk of bankruptcy and to carry out firm safeguarding audits for the protection of consumers from potential financial harm. It is important for the FCA to ensure that Fintech start-ups have the potential to grow and scale up instead of fail and shut down, for the consumers’ protection and their assets. Also, the FCA has made it clear that firms need to protect access to physical cash, as more than five million people still rely on it and use it.


  • Delivering fair value


The FCA expects firms to deliver products and services that fulfil consumers’ needs, give value back and are fair, while also not exploiting vulnerable people with unethical financing.


Providing consumers with excellent and quality products, the delivery of fair value will be achieved. Also, fostering a healthy and competitive environment in which Fintechs operate by constantly monitoring the market is crucial for the FCA. This healthy competition will promote more valuable products in the market and more options for the consumers.


  • The new Consumer Duty


This regulation focuses solely on the consumer and their needs. The FCA’s aim is to ensure that firms put consumers at the centre of their business, providing effective communication and information to its customers in order for them to make informed decisions when purchasing a product or service.


  • Effective regulation of market abuse and financial crime prevention


One aim of the FCA is to prevent financial crime in the market and reduce risks of abuse for consumers. Because digitalisation is exposing fintechs and consumers to frauds and security attacks, by following the FCA’s instructions we strive for stricter fintech controls and financial crime prevention. The FCA will also ensure this by closely monitoring financial complaints, suspicious transactions and investigating intelligence on fraud and financial crime.


  • Financial and Operational resilience of firms as well as Inclusion practices.


As mentioned previously, testing the financial resilience of a firm is imperative for the protection of the consumer as well as their assets and funds. The FCA will audit and review each firm to ensure that they have substantial financial resources compared to the potential risk and harm in case they fail. This is a safety net for their consumers and a crucial step when auditing a financial firm’s worth and liquidity.


Not only that but a firm should have operational resilience to avoid major disruptions, such as the pandemic, both within the business and within the financial market. This is due to disruptions destabilising both the market and the economy. Particularly young fintechs should be aware of potential risk factors and learn to take the appropriate preventative steps to avoid disruption. We can help you with that, following the FCA’s rules and new regulations.


Lastly, diversity and inclusion policies should also be implemented in the financial sector to avoid further operational disruptions. All financial firms should encourage diverse representation and a friendly culture.


A Policy Statement was released in March 2021 with guidelines that need to be implemented by all financial firms, in regards to best operational guidelines.


  • Environmental, Social & Governance


The UK Government has agreed to a net-zero economy by 2050. The FCA’s new regulations encourage firms to gradually transition as well, promoting a sustainable and greener future.


This new measure will be accomplished by promoting sustainable finance practices. The FCA will prioritise greenwashing concerns as well as work with the Government and other partners to standardise ESG practices and disclosures by firms. Fintechs should also prioritise greener and more sustainable-for-the-environment practises since all businesses and the Government are moving towards a greener future.



We work alongside you to help ensure your Fintech is compliant, follows FCA regulations closely and keeps the consumer at the heart of its business model.

The FCA recently announced its new business plan for the year of 2021/22. The report lists its key priorities for the upcoming year in regards to financial regulation and maintaining healthy financial systems.



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