High Standards – FCA General Counsel On Opening In The US And Asia, Emerging Technology, And Motor Finance Claims

The FCA describes itself in its strategy as "an international regulator for an international market" and it has recently established a permanent presence in both the US and Asia-Pacific. Can you tell us how the FCA is adapting to heightened geopolitical uncertainty and increasing global market fragmentation?

Our work at the FCA is truly international, simply because the markets we oversee cross so many borders. That means we spend a lot of time working with regulators from other countries, whether bilaterally or multilaterally, to make sure we're all pulling in the same direction. With the world feeling a bit more unpredictable these days and markets becoming more fragmented, this kind of co-operation is more important than ever.

In the UK, the government has made international collaboration a top priority, especially for financial services. Risks and opportunities don't stop at borders, so we're always talking about things like data sharing and interoperability with our counterparts. New technologies like AI and quantum computing are opening up fresh opportunities but they also bring new risks, both here and abroad.

We want the UK to stay competitive by keeping our markets stable, trusted, and open to innovation. Setting high standards helps us do that, and we're proud to play a leading role in shaping international rules, like the crypto and digital assets recommendations we led at IOSCO [International Organization of Securities Commissions].

Having a presence in the US and Asia-Pacific is a big step for us. It means we're more accessible to major international investors and can support UK financial services growth and inward investment. We're looking to build that network further in coming months.

We're also making it easier for global firms to set up in the UK, thanks to the new Office for Investment: Financial Services [OFI:FS]. This 'one-stop shop' helps international businesses navigate our regulatory landscape, with the FCA providing expertise right from the start. It's all about making the UK an even more attractive place to invest and innovate.

Could you outline the FCA's current priorities in the sustainable finance space and how it will support the government's strategy in establishing the UK as a global sustainable finance hub?

Sustainable finance is right at the heart of what we do. We want people to trust the market, encourage innovation, and support access to good, clear information about climate and wider sustainability-related risks and opportunities. This fits perfectly with the government's strategy to make the UK a global leader in sustainable finance.

One of our big initiatives is the Sustainability Disclosure Requirements [SDR]. These rules help consumers spot genuine sustainable investments and crack down on greenwashing. This includes anti-greenwashing rules, voluntary investment labels, and stricter requirements for naming and marketing funds. It's already making a difference, with over 150 funds using the new labels and four in five firms agreeing it's reduced greenwashing, according to an industry survey.

We're working closely with international partners to align standards and reduce fragmentation, which is key for competitiveness. We strongly support the International Sustainability Standards Board [ISSB] and will soon consult on moving listed companies to ISSB-aligned reporting. We're also looking at ways to streamline climate disclosure rules for asset managers to ease unnecessary burden while maintaining good outcomes for investors.

With ESG ratings coming under regulation, we'll be consulting on a regime that improves transparency and reliability, without being too prescriptive. We know the transition to a low-carbon economy is full of opportunities, but it can be tough for companies to access finance. That's why we're running a pilot with the PRA and Green Finance Institute to identify and consider practical ways to address barriers to scaling up climate solutions.

We'll keep working with the Bank of England, government, and other regulators to help the market manage climate risks and deliver on the UK's sustainable finance ambitions.

The FCA is developing a proportionate and sustainable regulatory regime for cryptoasset activities in the UK. With key areas still under discussion (such as the application of the Consumer Duty and access to the Financial Ombudsman Service), and given the diverging approaches in the EU and US, how can the FCA get its rules 'right' and enable UK crypto firms to remain competitive once the new regime goes live in 2026?

Getting crypto regulation right is really important to us. We want the UK to be a great place for crypto businesses — competitive, innovative, and trustworthy. We're still working through some key areas, like the Consumer Duty and what access customers will have to the Financial Ombudsman Service. We're taking our time to listen to lots of different stakeholders, because their input will help us shape rules that work for everyone.

We're also keeping a close eye on what other countries are doing. Crypto is global, so we're not working in a vacuum, we're learning from and collaborating with other regulators around the world.

We're active in international groups like IOSCO, the Financial Stability Board, and the Financial Action Task Force, to make sure the UK is in step with global standards and that we're implementing them early and consistently.

Motor finance has been prominent in the headlines this year. Without inviting you to front-run the conclusion of the FCA's consultation, what are you able to say about the FCA's key priorities in this space following the Supreme Court's decision in August and what, if any, challenges do you foresee in implementing a redress scheme?

There's been a lot of uncertainty in motor finance, but the courts have now made it clear: many lenders and brokers didn't follow the rules. We believe those practices were widespread which means many millions of consumers are owed compensation.

We've launched a consultation on our proposed way forward, a redress scheme under section 404 of the Financial Services and Markets Act. We think this is the best way to bring order to the market, treat everyone fairly, and minimise the operational challenges firms, courts, and the Financial Ombudsman Service would otherwise face.

The consultation is in full swing and we are engaging very broadly with stakeholders and receiving valuable feedback on our proposals. We know people have questions on our approach to calculating redress and that there are practical challenges, like identifying affected consumers and finding the details of old agreements, but we think these can be overcome with help from third parties. We also recognise this will be a big operational challenge for firms, so we are very open to feedback on how to make the scheme as straightforward as possible, including firms using automation where it makes sense to do so.

Issues around the disclosure of commissions in motor finance have attracted regulatory and legal interest for a number of years now. Is the FCA taking/going to take any action to avoid similar issues affecting firms in other sectors in future, given the risks which uncertainty creates to the attractiveness of the UK as a place to invest?

We appreciate the concerns of investors and the role such events can have on their decision making. We understand they value predictability and certainty, along with the strong tradition of the rule of law which the UK has. That is one of the reasons we think a redress scheme is the best way to address the past unlawful behaviour of lenders and brokers. Looking more broadly, we do not see any other comparable mass redress event on the horizon. We believe the Consumer Duty with its outcome focus has caused a fundamental shift in firm behaviour, and the proposals for modernisation of the FOS will enhance the way we work with them which should increase certainty in interpretation of regulation.

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