FCA competition boost needed
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Independent Commission on Banking member Clare Spottiswoode argues the Government’s plans to give the Financial Conduct Authority new competition responsibilities do not go far enough.
Speaking at a Which? conference on financial services reform in London this week, Spottiswoode, who is a former Ofgas director general, said: “George Osborne has said he is introducing a primary competition duty, however, for me, the current words the Government have proposed are not that. I do not think they go far enough.
“Although the Government proposals are a big improvement on the FSA, I still think they leave a huge amount to chance. The words are not clear about precisely what customer protection means.”
Text in the draft Financial Services Bill published in June detailing the legislation for the regulatory restructure states: “The FCA must, so far as is compatible with its strategic and operational objectives, discharge its general functions in a way which promotes competition.
“Chancellor George Osborne also referred to the FCA’s new primary duty to promote competition in his recent Mansion House speech.
Spottiswoode added that the regulator should do more to address the issue of product transparency, with a duty on the financial services ind-ustry to spell out product terms clearly.
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