The recent FCA-published Regulatory Priorities report for Consumer Investments ensures confidence and safety for consumers and are provided with clear information to build a strong investment culture. Thistle Initiatives Consultant, Sophia Ioannou, explores the report and what it means for firms.
The FCA has published a Regulatory Priorities report for Consumer Investments that is intended to ensure that consumers can invest confidently and safely, and are provided with clear and balanced information. The aim is to build a strong investment culture, overcoming the increasing risks consumers face as a result of new technologies, systems and controls.
The report is relevant to advisers, wealth managers, Self-Invested Personal Pension (SIPP) operators, investment platforms, crowdfunding platforms, peer-to-peer lending platforms and Contract-for-Difference (CFD) providers.
The FCA's Regulatory Priorities focus on four main areas:
1. Building a Stronger Investment Culture
The report is relevant to advisers, wealth managers, Self-Invested Personal Pension (SIPP) operators, investment platforms, crowdfunding platforms, peer-to-peer lending platforms and Contract-for-Difference (CFD) providers.
Focus will be placed on ensuring firms comply with the clear, fair and not misleading rule. The FCA will ensure that only necessary information is collected from firms to reduce the burden of information requests.
2. Strengthening Trust
Firms are expected to respond quickly to emerging risks, such as ensuring that insufficient financial resources are addressed. Impacts of implementing new technologies (e.g. AI) or products must be assessed to ensure good customer outcomes are achieved. Resilience must be maintained through stress testing and contingency planning.
Effective governance, strong controls and compliance help firms establish trust with consumers, manage risks, safeguard clients and foster innovation. Firms are also expected to deliver fair value and maintain high-quality services, ensuring timely transfers.
The FCA Early and High Growth Oversight pre-application guidance, innovation services and regulatory sandboxes will provide support to innovative and fast-growing firms.
3. Securing Good Consumer Outcomes
Firms are expected to create products and services that meet the needs of consumers, including those deemed vulnerable, and to ensure outcomes are reviewed. Costs and benefits must be assessed transparently to ensure fair value is provided to customers. Firms must also ensure clients are only opted out of retail protections, adhering to the client categorisation rules and provide prompt investment transfers, considering any vulnerable clients.
4. Strengthening Financial Crime Controls
The FCA expects firms to have adequate and robust due diligence and controls to counter the risk that a firm may be used to further financial crime and ensure effective oversight of appointed representatives, particularly given the possibility of increased financial crime risks. Effective surveillance must be in place to monitor these risks, and improved reporting must be considered. #
It was found that 29% of principal firms had not conducted financial crime risk assessments for their appointed representatives, and some firms with minimal regulated activity misused FCA permissions to look legitimate.
What Does This Mean for Firms?
Firms should ensure that they provide clear, accessible information, offer suitable products, provide good services and prevent financial crime to help with informed decision-making and operate transparently in the market.
Meet the Expert
Sophia Ioannou, Consultant 
Sophia recently joined Thistle as a Consultant in the Investment Wholesale team. She holds a Bachelor of Science in Psychology from the University of Nottingham and brings a strong foundation in investment compliance. Before joining Thistle, she worked at a hedge fund where she supported regulatory development projects and contributed to policy reviews, giving her practical insight into how firms adapt to emerging requirements. She has also completed the CISI Introduction to Securities and Investment and Global Financial Compliance modules, which further strengthened her technical knowledge.