FCA Annual Report 2023/24: Progress, Key Achievements and What’s Next

FCA Annual Report – 2023/24

The FCA published its Annual Report and Accounts, detailing its progress and key achievements over the past year.

The report highlights the FCA’s work in replacing assimilated EU law with FCA domestic regulation, focusing on proportionality, safe and scalable practices, and ambitious innovation at the core of its policy development.

Consumer Duty
The Consumer Duty is a central theme in the report, with the FCA highlighting its ongoing commitment to implementing the Duty consistently and proportionately. The goal is to encourage healthy competition and ensure consumer interests are prioritised.

General Insurance
In line with recent publications, the report raises concerns about compliance within the general insurance sector, especially with PROD 4 rules on fair value. The FCA is scrutinizing some firms to ensure they deliver positive outcomes for retail customers, citing specific concerns in the GAP Insurance market. This is a clear focus area in the general insurance market moving forward.

Enforcement and Early Intervention
The FCA cancelled the authorisation of 1,261 firms in 2023/24, twice as many as in the previous year. Additionally, 21 individuals faced financial crime charges—an all-time high—alongside nine successful fraud prosecutions. Acting swiftly and decisively in enforcement is clearly a priority, and the FCA may start publishing enforcement cases at an earlier stage to increase transparency.

Principal Firms and Appointed Representatives (ARs)
Oversight of Principal Firms remains a priority. In 2023, notifications for appointing ARs increased to a withdrawal rate of 5.9% from 1.6% in 2022. Additionally, the rejection and withdrawal rate for applications to perform controlled functions for ARs more than doubled. Complaints data shows improvement in AR oversight, as Principal Firms continue to align with the FCA’s AR strategy.

Key Metrics
The FCA has improved its authorisation process, with 98% of cases now assessed within statutory deadlines, up from 89% in Q1 of 2022/23. The report includes an “Outcomes and Metrics Report” showing progress in preventing financial crime, addressing problem firms, supporting consumer protection, and enhancing AR oversight.

If you would like to explore any areas of the FCA Annual Report further, please don’t hesitate to contact us.