Speaking on the Financial Conduct Authority’s Our Role and Business Plan webinar, Nikhil Rathi, CEO at the FCA, said the regulator must become a “a forward-looking, proactive regulator” as it seeks to deal with what he called the “profound forces” that were reshaping financial services.

Rathi said the pandemic had driven a rise in consumer vulnerability while other forces included ongoing changes in technology, the transition to a net zero economy and the regulatory overhaul needed as a result of Brexit.

Outlining how the regulator would meet these challenges, he said: “First, continuing to be more innovative – taking advantage of data and technology to increase our ability to act decisively.

“Second, continuing to be more assertive – testing the limits of our powers and supporting others to bring their powers to bear.

“Third, continuing to be more adaptive – constantly learning and always adjusting our approach as consumer choices, markets, services and products evolve. And underpinning it all will be a regime of accountability and culture of transparency.”

Rathi said the FCA will invest £120m into its data and technological capabilities over the next 3 years.

He said the days of light-touch regulation would remain in the past and that there was no scenario that would prompt a return to this approach.

He added: “Firms should expect us to be even more rigorous on upholding high standards – especially on governance, conflicts of interest and conduct, including considering diversity and inclusion as regulatory issues, as we set out last week with our colleagues at the Bank of England.”

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