National Audit Office launches investigation into FCA
The National Audit Office (NAO) is launching an investigation into the Financial Conduct Authority (FCA) to monitor its effectiveness as its list of responsibilities grows to include crypto, AI and online fraud.
The review is set to look into the financial regulator’s governance, strategy and culture as it introduces oversight into the new areas.
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“At a time when financial crime, particularly, remains a pertinent global issue, keeping up with the pace of change should be a top priority [for the FCA],” said Dr Henry Balani, global head of regulatory affairs at Encompass Corporation.
“This review represents a step forward and will help the FCA to fine tune its processes, improving operations and ensuring it is fully prepared to assist businesses in navigating an increasingly complex regulatory landscape.”
The NAO last audited the FCA in 2014, one year after its establishment.
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With a number of new changes recently introduced, including the Future Regulatory Framework and new Consumer Duty, the NAO will be inspecting how the FCA copes with change and how it is working with other financial bodies, including the Treasury.
“The FCA plays a crucial role in enabling the financial services industry to operate to the highest standards, but that shouldn’t mean that the regulator is above scrutiny,” said Khalid Talukder, co-founder at DKK Partners.
“Working with the NAO will enable the FCA to initiate an independent review of its policies, procedures, and operational effectiveness, which is long overdue.
“Having a regulator fully equipped to serve a dynamic market with the use of AI and digital currencies surging is in all our interests, and we welcome this announcement as a positive step forward for the industry.”
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