The Association of Professional Financial Advisers has urged the Financial Conduct Authority to be more transparent than its predecessor the FSA.
Responding to an FSA consultation, titled ‘Journey to the FCA’, the adviser trade body says the new regulator should be open about what it is doing unless there is a “pressing need” for confidentiality.
It also urges the FCA to consider the impact regulation has on both consumers and advisers.
Apfa policy director Chris Hannant (pictured) says: “In the past too little regard has been paid to the cumulative effect of regulation on both consumer outcomes and the profession as a whole. It is incumbent upon the FCA to ensure that we have a regulatory regime that, whilst protecting the consumer, leaves room for one of the UK’s most successful industries to grow and prosper.
“Improved transparency should mean a presumption of openness unless there is a pressing need for confidentiality. The FSA failed to achieve the right balance between confidentiality and transparency.
“The Arch cru settlement with Capita and others is a prime example of the regulator making decisions that have a significant impact on the market but with little transparency. The FCA must do better in this regard and be willing to disclose more details of these decisions.”