The Financial Conduct Authority (FCA) has reduced harm to consumers and businesses by stopping 627 firms from operating in the past year which had failed to meet the minimum standards.

This level is up 30% from the previous year, which the regulator suggested illustrates a determination to enforce high standards in the financial services sector.

The figures come as the FCA has set out how it has worked to reduce and prevent serious harm, set and test higher standards and promote competition and positive change as part of its report on performance during 2022/23.

In a year when many people felt pressure from the rising cost of living, the FCA reported that it has acted quickly to set out how lenders should provide tailored support to struggling borrowers, warned insurers to protect their customers from unnecessary add-ons or unfair penalties, and secured up to £47m in redress for borrowers in financial difficulty for the way their lenders treated them.

The FCA has estimated that for every pound spent on its operations last year, firms and individuals benefitted by £17 through its action.

“Maintaining high standards is key to supporting growth,” said chair of the FCA, Ashley Alder. “We are helping firms test their innovative products, guiding firms through the authorisation process and are supporting a range of supply and demand side market reforms.

“On 31 July, the new Consumer Duty will raise the bar for retail financial services and place good consumer outcomes at the heart of everything they do.”

Chief executive of the FCA, Nikhil Rathi, added: “The FCA has evolved into a more proactive, assertive and data-led regulator better equipped to face challenges like the rising cost of living in a more agile and effective way.

“Tailored support is important for those struggling with debt and we continue to work with firms to make sure people receive the right help to manage their finances, especially with the rising cost of living.”

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