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National Audit Office to scrutinise FCA

National Audit Office to scrutinise FCA


The UK's independent public spending watchdog is to look into how effectively the Financial Conduct Authority is carrying out its role.

In a low-key announcement in June, the National Audit Office (NAO) said it plans to look at how the financial service regulator is "working with others, particularly HM Treasury, to take action to meet aspects of the challenges and take advantage of the opportunities posed by recent changes". The study will be carried out this winter.

The NAO says on its website

"Recently, significant changes have been introduced or proposed to the FCA’s regulation of the sector. These include the Future Regulatory Framework, a new Consumer Duty for regulated firms, and a new proposed statutory secondary objective for the FCA to facilitate the international competitiveness and growth of the UK economy in the medium to long term.

"Externally, technological innovations such as cryptoassets and artificial intelligence provide challenges and opportunities for regulation of financial services."

The NAO last examined the FCA in 2014, shortly after the regulator was created to replace the Financial Services Authority.

Last week, FCA chief executive Nikhil Rathi outlined his approach to Big Tech and artificial intelligence in financial services. The regulator also recently announced increased scrutiny of companies marketing cryptoassets in the UK.