The FCA has published its annual Sector Views – an assessment of the risks and potential harm to consumers across financial services markets. This looks at the impact of macroeconomic developments and common drivers of change emerging across financial markets. It also outlines areas where there may be a negative impact on consumers or the integrity of the financial system in that sector. The report sets out what factors are driving harm, as well as considering how the harm may develop over time. The kinds of issues the FCA is concerned about include over-indebtedness in the credit market, high risk investment products and pricing practices in insurance.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA and interim Chief Executive designate, said: ‘What is clearly apparent from the Sector Views, is that many of the harms we are seeing are created by a significant number of smaller firms we regulate or firms beyond our remit. The findings in the report will contribute to our upcoming Business Plan and the decisions we make affecting consumers, market integrity and competition. ’