With the legislative and regulatory landscape continuing to evolve, it is critical that firms remain attuned to these changes and adapt their policies, processes, systems and controls where required.
Conducted amidst ongoing “concerns about the scale of account closures and access to financial services” in the UK, the speed at which data from thirty-four banks, building societies, and payment companies was collected illustrated the criticality of this concern to the FCA.
The FCA concluded that a broad range of reasons drove the assessed firms to de-risk and in some cases, de-bank, including account inactivity and dormancy, financial crime suspicions, and reputational risk. The report introduces and reinforces important factors for firms to consider if they are to withstand scrutiny from the regulator, the industry, and their consumers.