FCA moves to change the way it is perceived

10 Nov 2016

I am therefore delighted that the FCA’s Mission Statement echoed many of the same sentiments, though perhaps in less dramatic terms.

Andrew Bailey seems to have swiftly grasped the absolutely key point that the present regulation is overly complicated and unnecessarily heavy handed. There is an unreasonable amount of regulation for any firm to have to absorb while simultaneously running its business and looking after clients in a manner that is commercially viable.

It was always maintained that it was not the FSA or FCA's role to be economic regulators, but, given the way regulation has grown over the past few years, it is impossible for it not to have a significant detrimental economic impact on regulated firms and their clients.

"At 50 pages, the FCA's Mission Statement is itself no lightweight, but it does very simply state the key objectives of the FCA: to protect consumers, enhance the integrity of the financial services sector and promote competition in the interests of consumers." 

This is good news for both regulated firms and consumers, as the recognition that there needs to be the promotion of competition in the interest of consumers is critically important to a healthy and competitive commercial environment.

Introducing the statement, Mr Bailey also implied that the FCA wishes to change the way in which it is itself perceived. While there is no getting away from the fact that it is the regulator who implements and monitors policy, I welcome the acknowledgement that the objectives mentioned are shared by the majority in the industry and that, when it comes to positive consumer outcomes, we are all on the same team.

While some might pessimistically point out that we have, over the years, had many grand pronouncements by the regulators that have come to nothing, I choose to optimistically believe that Mr Bailey’s commitment to a "radically different” approach to regulation may produce a regime that is more efficient and more fair to all.  

Indeed, I go as far as to dare to hope that at long last we may see the green shoots of the much heralded and badly needed "regulatory dividend".


Testimonials

“Moving a team of sixteen advisers plus support staff from a network environment to directly authorised had its challenges but the excellent support and guidance from SimplyBiz ensured that everything was completed efficiently and on time.”

Chris Kelly
Boldon

Read More

Latest News

Matt Timmins: New guidance body has no right to word 'advice'

October 20, 2017

Much more needs to be done to help educate consumers on the vital difference between receiving guidance or advice

Read more >

Government must help meet the needs of the elderly

October 11, 2017

Being able to congratulate the FCA, while not by any means a first, is not something I am able to do regularly.

Read more >

"A princely way of looking at succession issues"

October 04, 2017

Seeing all the stories about Prince George starting school set me thinking about longevity and business succession issues for financial advisers.

Read more >

"Providers must allow tax deductible advice"

September 28, 2017

Knock, knock. Are you there? More importantly, are you listening?
I ask this question because of the enormous opportunities the current market is presenting for each and every adviser, whether working within a large firm or a one-person practice, as an independent adviser or restricted.

Read more >