CPMA will have power to ban products
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The Consumer Protection and Markets Authority will be given the power to ban retail products and notify investors of upcoming enforcement action against firms.
In an interview in the Financial Times today, Treasury financial secretary Mark Hoban (pictured) says the CPMA, to be renamed the Financial Conduct Authority, will be able to ban products or limit their distribution for up to 12 months.
Hoban says the FCA will have the power to warn investors of its intention to bring enforcement action against firms and individuals before they have been able to argue their case in an internal appeals process.
He adds the Government has renamed the regulator to emphasise its focus on the behaviour of banks, brokers and individuals. Earlier this month, the Treasury select committee called on the Government to scrap plans to promote the CPMA as a consumer champion, saying the phrase could mislead consumers.
Last month, the FSA published a discussion paper on product intervention, which suggested a “radical rethink” of regulation, including the introduction of price caps and bans on some retail financial products.
Hoban says the FCA will also be charged with increasing and fostering competition in the market and the Treasury is considering giving the regulator joint jurisdiction over internal competition enquiries, currently handled by the Office of Fair Trading.
In January, OFT chief executive John Fingleton told the Treasury select committee the regulator should have a statutory objective to promote competition.
Earlier this month, the outgoing head of Hong Kong’s financial regulator Martin Wheatley was appointed chief executive of the CPMA, now the FCA.
He will leave the Hong Kong Securities and Futures Commission in June and will join the FSA as managing director of its consumer and markets business unit in September, before becoming chief executive of the FCA when it launches in 2012.
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Readers' comments (13)
Anonymous | 17 Feb 2011 9:16 am
Blimey, the organisation has not even been set up yet, and it's going to change it's name already!!!!!!!
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Richard arnold | 17 Feb 2011 9:22 am
Extract of a letter sent to the George Osborn.
( CPMA now to be FCA)
I comment on a report stating that you said the CPMA will be a world class regulator.
Oh Dear. !!!!
Don’t make the same mistake as the Labour and its lack of understanding the FSA . The current and unaccountable ethos within the FSA is to aspire to be a world class regulator with this emphasis translating into an incestuous competition on out bidding Europe and the rest of the worlds regulatory bodies with little understanding of the consequence to the industry that they regulate and a loss of focus on actual consumer outcomes. FACT.
Government should reset the mindset and promote that the new CPMA mandate is to empower and regulate a UK “World class financial services industry” with regulation that promotes innovation efficiency enthusiasm and a real focus on genuine consumer concerns and outcome.
Getting the regulatory ethos the “right way round” will galvanise industry and regulator, rather than the current disconnect, and will resonate positively from the political perspective.
Anything less will mean a continuation of well meaning but ill conceived regulatory priorities and initiatives that are bereft of common sense and jeopardise industry viability.
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Julian Stevens | 17 Feb 2011 9:25 am
Good grief ~ they're making changes to the CPMA before it's even been formed.. Sounds like it's going to be a case of Meet the new boss, the same as the old boss. No mention, I note, of accountability.
That aside, if the FCA is going to be as "independent" of government as the FSA is claimed to be, then why is Hoban forever making statements about the government's plans for its powers and constitution?
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Anonymous | 17 Feb 2011 9:31 am
Thats a good start - having changed the name to something else before it is up and running.
Public confused - You will be
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Anonymous | 17 Feb 2011 9:45 am
Hoban says the FCA will have the power to warn investors of its intention to bring enforcement action against firms and individuals before they have been able to argue their case in an internal appeals process
GUILTY, until proven innocent.
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Anonymous | 17 Feb 2011 10:14 am
I used to despise Gordon.....until Hoban came along that is!!!!
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Anonymous | 17 Feb 2011 10:44 am
Mark Hoban has held his position since Dec 05, he is qualified as a chartered accountant. Knows chuff all about Financial Services.
Mr C, Please put someone in the position that knows how Financial Services work in the real world
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Exasperated me | 17 Feb 2011 11:06 am
I pity anyone with an FCA domain name!!
CPMA was a dead duck anyway, how could a consumer champion also be a regulator... oh, I forgot about the FSA... and the FOS.... er.. and the FSCS.
What's in a name eh?
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Big Mac Hoban takes another bite | 17 Feb 2011 11:15 am
THE KING IS DEAD LONG LIVE THE KING.
Q: What is the difference between the FSA and the FCA?
A: They have replaced the "S" with a "C".
So Big Mac Hoban wants to call it FCA. This get even more like the FSA designing their own replacement especially when you look at the full membership on the RDR implementation committee. Hoban takes advice from a string of bankers, advisers to bankers and former FSA officials. This is a small club and guess who’s not in it – the IFA!
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Michael Fallas | 17 Feb 2011 11:48 am
Is it being renamed FCA so it is easier for him to remember I wonder as does not FCA stand for Fellow Chartered Accountant?
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