Podcast ¦ Debt Reckoning: Ignore The Human Element (The FCA Strategy, 2025-30)

Key Take Aways

1. The FCA has launched a new five-year strategy, focusing on being a smarter regulator and supporting economic growth.

2. The strategy emphasizes helping consumers navigate their financial lives, with specific mention of promoting savings and investments.

3. The FCA intends to combat financial crime, recognizing the increasing impact of fraud on consumers.

4. Financial advisers express skepticism about the potential effectiveness of the FCA’s new strategy, particularly regarding debt advice.

5. There are concerns about the strategy’s lack of specificity regarding support for the 7 million people struggling with debt and financial insecurity.

6. The FCA’s approach to “open finance” raises questions about the protection of consumer data and its commercial viability.

7. There is a need for clearer regulations surrounding debt advice, particularly relating to the outdated Concave review process.

8. The podcast highlights the disconnect between the regulators’ understanding and the realities faced by clients in debt.

9. Consumer duty is seen as an attempt to mitigate regulatory issues, but its practical application remains unclear.

10. Advisors are leaving the sector due to increasing demands and insufficient support from regulatory frameworks.

11. The podcast calls for a unified sector-wide discussion on the interpretation of consumer duty and its impact on service delivery.

12. The importance of debt advice is framed as integral to economic growth, arguing that effective debt management can liberate consumer spending.

Key Statistics

• Over 7 million people are struggling to pay bills and debts in the UK.

• The Concave review, which governs debt advice, has been ongoing for more than two years without resolution.

Key Discussion Points

1. FCA’s new strategy highlights the importance of smart regulation and economic support.

2. Skepticism exists regarding the FCA’s understanding of issues faced by vulnerable consumers.

3. Open finance could improve financial understanding but also raises concerns about data protection.

4. The absence of updated regulations in the debt advice sector remains a significant issue.

5. Advisors feel overwhelmed by the demands of case reporting and confirmation processes.

6. The podcast reflects on how consumer duty might not effectively address the challenges in debt advice.

7. Technological solutions, while potentially beneficial, have not yet delivered on promises made through open banking.

8. Regulation is necessary for protecting consumers, particularly in the context of economic recovery.

9. There is a recognition that innovative financial solutions must align with consumer needs.

10. The role of debt advice in stabilizing individuals’ financial situations is critical for broader economic health.

11. Informal discussions between agencies and advisors are necessary for aligning practices with consumer duty.

12. Call for ongoing advocacy for the debt advice sector to ensure its needs are recognized at the regulatory level.

Podcast Description

In this episode of Debt Reckoning, hosts Andy Shaw and Antonio explore the FCA’s newly launched five-year strategy, delving into its implications for both consumers and debt advisors. They discuss the challenges faced by millions struggling with financial insecurity and the regulatory landscape’s evolving nature. With an emphasis on the interplay between technology, consumer duty, and the significance of debt advice, the podcast aims to shed light on critical issues that affect both clients and advisors, providing insights that could shape the future of financial services in the UK.