You are here: Home - News -

UK financial services has a ‘very sorry history’ – Bailey on FCA 2017 Mission 

by:
  • 18/04/2017
  • 0
UK financial services has a ‘very sorry history’ – Bailey on FCA 2017 Mission 
The Financial Conduct Authority (FCA) published its 2017 Mission statement intended to create a new era of openness and regulation as new CEO Andrew Bailey stated the 'UK’s financial future must be very different to its past'.

This is the regulator’s response to the consultation which ended on 26 January this year intending to clarify its powers, its aim to be more transparent and set out its expectations of firms more clearly.

Trust in financial services markets has been challenged by misconduct, said the FCA in its feedback statement, citing examples including Foreign Exchange (FX) and the sale of Payment Protection Insurance (PPI) products. On financial advice, the regulator added: “The Financial Advice Market Review (FAMR) found that low levels of customer demand for financial advice were driven by a lack of trust, following previous mis-selling.”

It said: “We have taken important steps to embed changes that will improve trust in the market, including the Senior Managers and Certification Regime (SM&CR). We must understand consumers’ experiences of financial markets, and gather information on these by cooperating with consumer bodies, analysing data from third parties including the Financial Services Consumer Panel (FSCP), and importantly, our own contact centre.”

 

FCA transparency

In its feedback, the regulator outlined a number of changes including clearer progress reports during diagnostic work, topic pages with clear updates and timelines to signpost information and promises of clearer online communications.

The regulator also said understanding the past impact of regulation should help it make better decisions in future and it admitted it needed to justify the costs involved in many of its decisions explicitly laying out how they added public value.

The FCA’s CEO, Andrew Bailey in post for just four months after leaving the Bank of England, said after two financial crises in the last decade, the first prudential in the credit crunch and the second mired in conduct of business from PPI to Libor rigging and fraud, this was a very ‘sorry history.’

Bailey said: “The future needs to be radically different from the past. We owe this to the public who are the consumers of financial services.”

The FCA now regulates 56,000 firms and 140,000 individuals, more than twice the remit of the Financial Services Authority (FSA).

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
head shot of Tony Salentino TSLE
Complete reports post-crunch record month

Complete FS has reported its best month for new business since 2008, with over £50m in applications across the specialist...

Close