The Financial Conduct Authority (FCA) has released its five-year strategy with a central focus on prioritising innovation for growth and embracing technology.
Building on four key priorities, the regulator is shifting its focus to implementing smarter regulation and fostering market innovation to unlock new growth.
At the EmTech Global Conference today, Lauren Dixon, head of data at the FCA, spoke on the regulator’s plans for “Strategy 25,” and acknowledged the “immense potential” of decentralised finance.
“Innovation and regulation are not normally two words heard together, however, at the FCA we view innovation not just as a tool for transformation, but a core driver of growth,” said Dixon at the event run by the UK’s Investment Association.
Going forward, the FCA has promised to reform how it regulates, taking a more flexible approach, with less intensive supervision for those demonstrably seeking to do the right thing.
“Our strategic growth objectives are deeply intertwined with our focus on technology, and that enables us, we think, to build a more resilient, dynamic and forward-thinking financial services market,” she said.
Rebalancing risk to foster innovation is another central focus of the plan, stressing a focus on risks that regulation should allow in the context of our current environment, rather than that of the past.
“Our goal is to is to create a market where new technologies such as AI, blockchain, quantum computing don’t just disrupt, but enhance the financial ecosystem, allowing firms to grow and scale while staying compliant with our regulatory standards,” Dixon added.
Through an increasingly tech-positive approach, the FCA will foster growth for the financial sector and individual consumers, investing in its technology, people, and systems.
Dixon commented on the success of the digital sandbox, positioning it as a key part of the regulator’s innovation suite.
“Our regulatory sandbox allows businesses to test innovative products and services and business models in a live market environment, while ensuring appropriate consumer protection pace,” she said.
