The latest FCA and Practitioner Panel survey shows rising levels of satisfaction, confidence and trust in the FCA among firms, alongside a strong understanding of Consumer Duty expectations.
The FCA and Practitioner Panel annual survey[1] of regulated firms provides valuable insights into how firms think we’re performing.
The latest survey shows 79% of firms are highly satisfied with their relationship with the FCA, up from 74% last year. The proportion of firms rating the FCA as a highly effective regulator also increased from 69% to 76%, while 75% reported high levels of trust.
Firms were most confident in our work to protect consumers (87%), ensure markets work well (85%) and enhance the integrity of the UK financial system (85%). There was a 27-percentage point increase in firms’ understanding of the Secondary International Competitiveness and Growth Objective and a 25-percentage point increase in confidence in our delivery of it.
We took on board feedback from last year’s survey and provided further guidance[2] to help firms embed the Consumer Duty[3]. This year, 88% of firms say they understand what we expect on supporting consumers and embedding the Duty.
The findings also provide valuable insight into where firms would like to see further progress, including on regulatory burden. We’re already simplifying reporting by removing outdated or duplicated data returns for 90% of firms.
Nikhil Rathi, chief executive of the FCA, said: 'A year into our strategy it's encouraging to see growing confidence across many areas of our work. We know there is more to do. For example, while we can’t do our job without the data firms provide, we should continue to simplify requests and make them easier to manage.'
Matt Hammerstein, chair of the FCA Practitioner Panel, said: 'This year’s survey results indicate firms continue to have broadly positive views of the FCA, including strong understanding of expectations under the Consumer Duty and significant growth in confidence in the FCA’s ability to deliver on its secondary objectives focused on growth and competitiveness.
'The Panel is encouraging the FCA to be clearer about the outcomes it expects its priorities to produce, and more vocal about the progress it is making against these, to strengthen confidence in the UK as a leading global financial centre and attractive place to invest.'
In the first year of our strategy, we've delivered an estimated £5.6bn in benefits to consumers and the economy, including launching My FCA[4], reducing reporting burdens to save firms around £16m annually, and introducing nearly 50 pro-growth measures to boost UK competitiveness and innovation.
Since the survey was conducted, we’ve continued our work to deliver landmark reforms, including working with HM Treasury and the Financial Ombudsman Service to modernise the redress framework[5], support industry delivery of the Advice Guidance Boundary Review[6], regulating Buy Now Pay Later products[7], establishing a new regime for cryptoassets[8], and progressing the PISCES private markets framework[9].