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Financial Conduct Authority: Risk Outlook and Business Plan 2013

CII Policy Briefing

Publication date:

28 March 2013

Last updated:

22 September 2017

Author(s):

Policy and Public Affairs

The Financial Conduct Authority (FCA) has published its Financial Risk Outlook and Business Plan 2013-2014. These are the organisation's first publications in its new identity ahead of legal cut-over from the former Financial Services Authority on 1 April 2013.

The FRO sets out the FCA's approach to assessing conduct risks within financial services. It identifies three primary drivers of conduct risk: inherent factors (such as supply-side failure); behavioural factors (such as mis-selling); and environmental factors (such as the general economic climate). As well as identifying broad risks across financial service, the FRO details five priority risks for the coming year:

  • Product design;
  • Distribution channels;
  • Payment and product technologies;
  • Risky funding strategies; and
  • Poor customer understanding of risk and return.

Alongside the FRO, the FCA has published its 2013-14 Business Plan. The plan, which is underpinned by the FRO, shows how the FCA expects to manage risks it has identified while meeting its objectives, which are to:

  • Secure an appropriate degree of protection for consumers.
  • Protect and enhance the integrity of the UK financial system.
  • Promote effective competition in the interests of consumers.

This briefing looks at both publications and focuses in particular on the FCA's approach to risk, the identified key risks and how they will be tackled.

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This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.

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