On 5 May 2022, the FCA published a speech by its Chief Executive, Nikhil Rathi entitled ‘Learning from the last 30 years to face the next’.
Key points in the speech include:
- The FCA is growing its expertise in the digital field. As regulators, the remit the FCA faces is poised to broaden as tech companies become more involved in distributing and promoting financial products.
- Artificial intelligence can amplify risk as well as benefits. For example, you only need some data to be inaccurate or skewed for customers to be unfairly profiled as high-risk and locked out of the market. On the flip side, more accurate data can enable personalisation which can lead to better deals for some customers.
- In order to capitalise on innovation in the next 30 years, diversity and inclusion must be fully harnessed across the financial services industry.
- The FCA has warned that firms that do not embrace diversity of thought will struggle to service the needs of a diverse customer base and manage conduct risk effectively.