UK: FCA Publishes "New" Mission Statement

On 26 October 2016, the FCA published a Mission Statement titled “Our Future Mission”. The aim of the publication is to “establish a set of guiding principles” that explain how the FCA pursues its strategic and operational objectives and decides on its priorities and the tools used to deliver them. Although not a formal consultation paper, the FCA has sought comments on the Mission Statement by 26 January 2017. It is anticipated that it will use the Mission Statement as guidance in its next Business Plan.

The FCA Mission Statement

Ensuring that markets function well

The FCA accepts that it is not possible to create markets and firms that never fail. It plans to ensure that it applies a combination of forward-looking judgement in Supervision and backward-looking judgement in Enforcement where rules have been breached. When failures occur, they should be orderly and not undermine the FCA’s statutory objectives. The FCA’s preference is to use its competition policy tools where its actions will improve functioning of markets as a whole.

What the FCA regulates

The FCA observes that many of the problems in the market from 2008 onward have been caused by regulated firms acting outside the regulatory perimeter (e.g., FX, LIBOR). The FCA has the power to intervene in these activities, but will prioritise intervention outside the perimeter when it believes its objectives are threatened (i.e., where the unregulated activity is illegal or fraudulent or has the potential to undermine confidence in the UK financial system; calls into question to suitability of a firm; or is closely linked to, or may affect, a regulated activity).

Financial conduct regulation and other areas of public policy

The FCA notes that some factors may impact consumers, but lie outside its regulatory remit. It will establish where it should use financial conduct regulation to address these issues and where it should leave matters to be resolved by public policy-making.

Protecting consumers

The FCA is focussed on “ensuring the appropriate degree of protection for consumers”. What is appropriate protection will depend on both the capability of the consumer and complexity of the product or service.

Consumer redress

The FCA believes it has a role (with the FOS and the FSCS) to ensure that consumers can receive redress through cheaper and quicker routes than through the courts. In deciding whether redress should be effected, it will consider:

  • how quickly and urgently the redress is needed
  • the number of consumers affected
  • if the activity that led to the harm occurs inside or outside the regulatory perimeters.

Vulnerable customers

The FCA intends to give some consumer groups in some markets higher levels of protection than others and will keep its view of who is perceived as “vulnerable” under review.

Defining harm

In assessing harm, the FCA will consider the impact it has, either in terms of the numbers affected or the severity of the harm likely to be caused. The FCA will look at the cause of the harm, as well as its impact, and use its intervention framework to decide the most proportionate and effective use of tools to tackle it. This could range from direct action with one firm to a marketwide approach.

Transparency and disclosure

The FCA believes it can play a greater role in helping consumers access the right services for their needs by influencing how they make decisions. This can include changing the way firms present choices to consumers. The FCA will consider restrictions on a market where it feels that behavioural “nudges” and other ways of presenting consumers with information are not working, but has said that it will use some measures cautiously, since it does not wish to limit choices for consumers or innovation in the market.

Intervention to stop potential harm

In deciding whether to intervene, the FCA will consider:

  • whether solving the problem would help meets its objectives
  • whether using the powers would address the problem effectively or whether intervention by another authority would be more effective
  • whether the activity in which the FCA is intervening has a broader social benefit, and how that may affect that provision
  • what degree of consumer protection and responsibility is appropriate in that market.

It will seek to be more transparent about the interventions it makes and decides not to make.

Market design

Part of the FCA’s standard-setting involves influencing the conditions for competition to work well. It uses market studies and can also use its powers under the Competition Act to take action for breaches of competition law.

Supervising firms

The FCA emphasises that, while it sets the standards by which financial services firms operate, it is not a substitute for firm governance. Firms, particularly through the Senior Managers and Certification Regime, are expected to develop a culture of responsibility to identify harm developing from behaviour and take steps to address this risk. When firms do fail, the FCA intends to ensure that the firms exit the market in an orderly way, and disruption and harm to consumers is minimised.


The FCA continues to approach enforcement focusing on deterrence, but it has also the aim of underlining the value of the rule that may have been breached and building market and public confidence that wrongdoing will be identified and dealt with. In cases where a formal investigation and public sanction does not emerge despite a rule breach, the FCA has indicated that it will work with firms to agree on lessons learned and ways forward. It intends to review its use of private warnings.

Measuring what the FCA does

The FCA will assess its performance by:

  • measuring operational efficiency using a value-for-money framework
  • measuring the impact of policy interventions
  • measuring the outcomes in markets as a whole.


Although this is, no doubt, a well-intentioned document, it is questionable how much real impact it makes for those operating in the market or for consumers, or indeed for the regulator itself. Most of the material set out in the Mission Statement has been said in one way or another in previous FCA publications or FCA guidance. It is curious that the FCA, having operated since 2013, feels it must now articulate its mission.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions