The FCA published its 2016-17 Business Plan on 5 April. The document is shorter and less detailed than in previous years, with only a brief Risk Outlook section, and makes limited announcements of new work. This may reflect the fact that the new CEO, Andrew Bailey, will not join the FCA until July, although as a member of the FCA Board, he will already have had an opportunity to influence the Plan. Like last year, the FCA has continued with its magic number of seven priority areas, rolling over five areas and prioritising two new areas – wholesale markets and the provision of advice.

There is continued focus by the FCA throughout the document on culture, innovation and technology. Despite scrapping a thematic review on culture in banks three months ago, the FCA makes clear that this is an area where it expects firms to continue to make progress and develop a "culture of accountability at all levels". While noting the risks associated with technology, the FCA also intends to encourage innovation, competition and new entrants to the market, for example through Project Innovate and the new "Regulatory Sandbox" intended to help firms test new ideas.

Compared to previous years, the FCA has sought to more closely align its key priorities with its scheduled work and under each key priority has set out two new sections on "outcomes we seek" and "measures of success". These will provide firms with more clarity on the outcomes the FCA expects firms to achieve and how it will measure its own performance as a regulator.

Firms seeking to set their conduct risk agenda for the year ahead will be little clearer on new action the FCA expects them to take after reading the Business Plan. However, firms should look at the outcomes and measures of success that the FCA sets out under each priority area to understand the principles the FCA is seeking to achieve and ensure that their activities are aligned to these.

Please see our briefing note for further details on the FCA's key priorities and what they mean for firms.

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