The FCA’s chief data, information and intelligence officer, Jessica Rusu, has delivered a speech on the FCA’s role as a data-led regulator. The speech explores the FCA’s response to new technologies and how it is using its own resources to tackle the challenges faced by consumers and industry in respect of these technologies. Highlights include:
- The FCA has been utilising its Scam Smart and InvestSmart campaigns to remind consumers to fully understand what they’re getting into and to appreciate the risks involved;
- The FCA has been engaging with social media platforms to ensure they are complying with laws that prevent communication of unregulated investments;
- Digital listening tools help the FCA collect data on everything from mortgages and investments to fraud and scams, which help the regulator understand consumer concerns and business challenges;
- The FCA aims to define and codify so-called “paths to harm”, which are the behaviours and events likely to end in consumer harm or markets failing to function, eg the conditions that might give firms an incentive to pursue aggressive selling practices. This will allow the FCA to intervene earlier to prevent harm from occurring;
- The FCA is working with industry to ensure consumers are protected from AI harm. This includes addressing the AI associated risks around privacy and transparency, or manipulation and bias; and
- The FCA intends to publish a refreshed data strategy soon.