Financial Services Risk and Regulation Unravelled Podcast

Episode 74 | Regulatory Update : 5 year Financial Conduct Authority Strategy

The Financial Conduct Authority (FCA) has published its 5-Year Strategy (2025 – 2030). In this episode David Morrey, Partner, Head of Investment Management, and Ben Farmer, Senior Manager, review its core focus areas:

• Reducing and preventing serious harm
• Setting and testing higher standards
• Promoting competition and positive change     

In addition to the strategy, they also discuss the FCA's other priorities, and explain what they mean for businesses in the future.

Read our insight to uncover that the FCA's business strategy for 2025 - 20230 means for firms - A new strategy for 2025 - 2030

 

Note: The FCA’s Regulatory Initiatives Grid 2025 was released after the recording of this podcast.

Episode 73: Regulatory update - from deregulation trends to consumer protection

Join David Morrey and Ben Farmer as they explore the latest regulatory developments and their impact on the financial services industry.

 

In this episode, they discuss:

• Regulatory Changes & Updates: The FCA’s decision not to proceed with certain proposals, including diversity and inclusion rules, enforcement disclosure changes, and the sustainability disclosure regime for delegated portfolio managers.
• Consumer Support & Vulnerability: Insights into good and poor practices in consumer support and vulnerability.
• Ongoing Advice & Remediation: A deep dive into the FCA’s guidance on ongoing advice.
• Motor Finance Redress: Updates on the potential industry-wide redress scheme for motor finance, pending the Supreme Court decision.
• Consultation Papers & Policy Statements: A look at recent FCA consultation papers and policy statements.

 

Listen now for expert insights and practical takeaways on these key regulatory developments.

Episode 72: Financial Services challenges and trends

The financial services industry will continue to evolve throughout 2025. It’s important to look beyond individual compliance requirements and consider the broader themes driving these policy shifts — from government initiatives and socio-political factors to reactive responses to emerging consumer issues.

 

In this episode, Head of Financial Services, Alex Ellerton, is joined by Paul Garbutt (Partner, Head of Banking and Capital Markets), Rob Benson (Partner, Head of Insurance), and David Morrey (Partner, Head of Investment Management) to explore the key trends and challenges impacting financial services and its various sectors.

The conversation covers:

• Regulatory environment
• Technology and innovation
• Macroeconomics and market trends
• M&A and consolidation
• And more

 

Episode 71: Regulatory update - green shoots of growth

David Morrey and Ben Farmer discuss the responses from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) on adapting to the Treasury's prioritisation of growth. 

They also discuss the FCA's thematic review of wholesale brokers' anti-money laundering initiatives and the implications of its controversial email retention policy, as well as the ongoing Supreme Court case involving finance providers, the FCA and Markos Markou, and more.

Episode 70: Regulatory update - What should we expect in 2025?

David Morrey and Ben Farmer discuss the regulatory issues that they expect will have a significant impact on the financial services sector in 2025, including motor finance remediation and the future of the FCA Handbook.

 

They also ask what the growth agenda (and the Chancellor’s Christmas challenge to each regulator) will mean in practice.

Episode 69: Regulatory update – where are we at the end of 2024?

In our final episode of the year, David Morrey and Ben Farmer discuss the latest updates on the motor finance saga, where the Supreme Court has expedited an appeal involving Close Brothers, and the FCA's involvement in urging a swift resolution.

The conversation also covers other topics related to this regulator:

• Consumer Duty feedback, and review of it in annual reports
• Insight on complaints and root cause analysis
• Consultation on the 'name and shame' rules
• Changes around MiFID in the FCA handbook

Other topics include reporting requirements for life insurers, advice guidance boundary review, and the Barclays fine settlement related to the Qatari investment disclosure case. 

Read more about these updates 

Leave to appeal motor finance to Supreme Court, FCA open letter Letter to Supreme Court: support for application for expedition - Enforcement update https://www.fca.org.uk/news/press-releases/fca-seeks-further-views-enforcement-transparency-proposals

2024-2025 priorities for Consumer Duty https://www.fca.org.uk/publications/corporate-documents/our-consumer-duty-focus-areas 

The FCA on the Consumer Duty in board reports

https://www.fca.org.uk/publications/good-and-poor-practice/consumer-duty-board-reports-good-practice-and-areas-improvementComplaints root cause analysis and areas for improvement

https://www.fca.org.uk/publications/good-and-poor-practice/complaints-and-root-cause-analysis-good-practice-and-areas-improvementCP24/24 MIFID Ord Regulation

https://www.fca.org.uk/publications/consultation-papers/cp24-24-mifid-organisational-regulation PRA CP on liquidity reporting for insurance

https://www.bankofengland.co.uk/news/2024/december/the-pra-consults-on-liquidity-reporting-reforms-for-insurersCP 24/27 advice guidance boundary https://www.fca.org.uk/publications/consultation-papers/cp24-27-advice-guidance-boundary-review-targeted-support-reforms-pensions

Episode 68: Regulatory update – the Government's financial services reforms

In the latest episode David Morrey and Ben Farmer discuss a bumper list of current regulatory issues as previewed in Rachel Reeves's Mansion House speech, aimed at unlocking innovation and growth:

Modernising the Financial Ombudsman Service

The Government's desire to modernise the Financial Ombudsman Service framework, including the previously issued call for inputs. 

Certification regime consultation

An upcoming consultation on replacing the certification regime with a more proportionate system to reduce costs.

National payments

The Government's plan to publish a national payments vision and launch a pilot to deliver a digital gilt instrument using distributed-ledger technology.

ESG and green finance

The ongoing focus on ESG and green finance, with several upcoming consultations on various related items.

Financial services growth and competitiveness strategy

The Government's plans to publish a financial services growth and competitiveness strategy in spring 2025, alongside a call for evidence to gather industry input on the direction it should take.

FCA consultation on financial decision making

An upcoming FCA consultation aimed at helping households make better-informed financial decisions as part of the advice guidance boundary review.

Captive-insurance companies framework

The Government's consultation on a new framework for UK-based captive-insurance companies to make the country a more attractive hub for them.

Pension system reforms

The Chancellor's plans to reform the pension system to allow for greater investment.

Modernising the redress system

A call for input on modernising the redress system, focusing on improving the process for handling mass redress-events and addressing perceived misalignments between the FCA and the Financial Ombudsman Service.

 

Other recent developments discussed include:

FCA market study on premium finance

New FCA market study on premium finance in home and motor insurance. The study aims to understand the reasons behind rising premiums and assess whether premium finance arrangements represent fair value for customers.

Court of Appeal decision on motor finance

The recent Court of Appeal decision related to motor finance claims, which could potentially open the door for challenges to finance-related contracts with undisclosed commissions.

 

Episode 67: Navigating motor insurance total loss claims

In this episode, we delve into the key aspects of motor insurance total loss claims.

Blandine Arzur-Kean, Managing Director, Grant Thornton is joined by colleague Philip Tregurtha, Director, Grant Thornton and Kate Pender, CEO, Fair4All Finance, to discuss:

• best practices for vehicle valuation and settlement processes
• fair and standardised processes for settling claims
• supporting vulnerable customers
• building trust with policy holders
• valuation challenges and claim frequencies associated with electric vehicles.

Episode 66: Court of Appeal ruling on motor finance commission

David Morrey, Head of Financial Services Regulatory Advisory, and Paul Garbutt, Head of Banking, discuss the recent Court of Appeal decision regarding motor finance complaints, which requires greater disclosure of commissions paid to brokers and explicit consent from borrowers.

This decision has significant implications for the industry, extending beyond regulatory requirements to contract law. During the episode we cover judgement overview, disclosure requirements, industry impact, implications for lending contracts and industry reaction, and risk mitigation.

Episode 65: Reflecting on one year of the Consumer Duty

It’s been over a year since the financial services industry began embedding the Consumer Duty for existing products. The FCA’s relentless focus on good consumer outcomes is reshaping the landscape. 

In our latest podcast episode Blandine Arzur-Kean is joined by regulatory experts David Morrey, Peter Lovegrove, and Supriya Manchanda to discuss: 

• the impact of the Consumer Duty 
• challenges firms are facing around management information, data, outcomes testing, and ensuring good results for customers 
• product governance and fair value assessments 
• future of conduct regulation 
• opportunities with AI 

Do you need guidance on the Consumer Duty? You can get regular updates from our dedicated hub. Visit our Consumer Duty Hub here.