London - The UK Financial Conduct Authority will prioritise advising
the government on Brexit and helping consumers with improperly sold payment-protection
insurance, according to its business plan, published alongside a “mission”
statement that seeks to usher in a new era at the regulator.
The FCA allocated 2.5 million pounds ($3.2 million) for
Brexit costs over the next year, about 0.5 percent of its 526.9 million-pound
budget, Chief Executive Officer Andrew Bailey said at a press conference
Tuesday in London. The amount was relatively small because the agency is trying
to absorb as much as it could through its existing spending.
On PPI, the FCA will work on a campaign to make sure
consumers are aware of an August 2019 deadline to file claims, the agency said
in the business plan. Banks have already paid out 26.2 billion pounds in
PPI compensation to consumers.
Other areas to focus on include helping vulnerable
customers, improving banking culture and governance and combating cybercrime.
Alongside the annual plan, the FCA set out a blueprint to more clearly define
the authority’s agenda for the industry and public after a turbulent few years for
the regulator.
"The mission gives firms and consumers greater clarity
about how and why we prioritize, protect and intervene in financial
markets," Bailey said in a statement. "When we make regulatory
judgments, we will be more transparent about how we reached them."
Shoot First
Bailey, who was previously Bank of England Deputy Governor,
took the role of FCA CEO in July, one year after former chief Martin Wheatley
was ousted by then Chancellor of the Exchequer George Osborne.
Read also: Ethics tests compulsory as UK finance sector cleans up its act
Wheatley’s departure came after a number of crises at the
regulator including a debacle about how it handled a press briefing that sent
shares of some of the largest insurers plummeting and a misguided comment that
the FCA should "shoot first, ask questions later."
The FCA issued a draft of the “mission” document in October,
which was followed by a three-month consultation. The plan, which was overseen
by Bailey, is viewed as an attempt by the four-year-old regulator to draw a
line under previous issues and start a new era.
The FCA highlighted work on extending the Senior Managers
and Certification Regime to the entire financial industry next year in its
business plan. The SMCR puts the onus on firms to approve individuals as fit
and proper to work for them and more clearly outlines the responsibilities of
senior individuals to improve accountability.
At the press conference Tuesday, Bailey was also asked about
the FCA’s view on whistle-blowing following the recent scandal at Barclays Plc
where Chief Executive Jes Staley tried to identify an individual behind the
complaint. Bailey said he couldn’t comment on the Staley situation, but
emphasized whistle-blowing was "very important" to the regulator and
the agency relies on tips to aid its work.