With the introduction of Consumer Duty in July 2023 and the current FCA consultation around capital deduction for redress, increasing regulatory demands will continue to be felt across all financial services businesses in 2024 . In addition to this, businesses should also be aware of The Worker Protection Act 2023 which will impose a new duty on all employers to take reasonable steps to prevent harassment and sexual misconduct of employees in the workplace. This is particularly relevant given the FCA’s Approved Person requirements.

The industry is dealing with a tight labour market across all sub sectors. Similar to the US, with the UK facing an ageing industry workforce, businesses will be focusing on how to attract and retain key and new talent, with an expectation that investment in technology and AI will fuel interest in the industry.

In addition to attracting talent, investments in technology will continue to drive change across financial services businesses, providing protections against increased fraudulent activity and cyber-crime.