Setting out his vision for the new regulator, Martin Wheatley addressed a comment made by former Financial Services Authority (FSA) chief executive Hector Sants that the industry should “be afraid” of its regulator.
“You won’t hear from us a ‘be afraid’ tone. We want a discussion with senior officials. We have to have a dialogue,” Wheatley told a news conference on Thursday.
“It’s about having a balanced approach. It’s important there is individual accountability. That will be a priority.”
The FCA is one of two regulatory bodies replacing the FSA from next month.
Wheatley said the FCA’s approach would not be to assume that levying higher fines on the largest firms would solve the industry’s ills.
Increasing the level of fines would have no impact unless top management also took responsibility, he said.
“To be honest, to the banks that make billions of pounds in profits, whatever the level of fine it will get passed on to shareholders,” he said.
