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Apfa calls on Govt to create FCA duty towards small firms

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Apfa is calling on the Financial Conduct Authority to have a duty to examine the impact of its rules on small businesses as part of a Government consultation into the role of regulators.

In a department of business, innovation and skills consultation to amend the regulators’ compliance code, which closed on 3 May, it asks businesses whether regulators’ actions should have a regard for growth.

It also says it will amend the regulators’ code to bring greater certainty over regulations, remove burdens and make regulators more accountable.

Apfa policy director Chris Hannant welcomes the consultation, particularly the duty of regulators to focus on growth.

But he says: “We believe the Government should go further, and bring the FCA within the scope of the proposed stronger statutory duty for regulators to have regard to growth.

“There are some provisions in the existing code we would like to see included. These include a separate, explicit requirement for regulators to consider the impact of their actions on smaller businesses, and a specific requirement that regulators regularly review the data they ask of businesses, with a view to reducing the amount requested.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. In the scheme of things, the greatest hurdle and barrier for small firms is employment and Government legislation. We have over 35 different policies because we have the cheek to employ people and while APFA are right about the duty of care by the regulator I wish teh Government would do something about the other burdens on small business. As for Corporation Tax….

  2. Norma Snockers 7th May 2013 at 11:34 am

    Isn’t the problem rather less that the Statutory Code is in need of amendment than that the FCA’s (apparent) exemption from it needs to be removed altogether so as to bring it into line with other regulators?

    What’s the use of tinkering with something that the FCA remains free to ignore?

  3. Kevin Klinker 7th May 2013 at 11:55 am

    Why should the FCA be allowed unshackled powers with no accountability?

    If they are considered competent then they should be answerable to both the public (via Parliament) and the industry that feeds this avaricious symbiote.

  4. Julian Stevens 11th May 2013 at 12:01 pm

    To me, APFA is like a very small political pressure group with a five page manifesto comprising a variety of indubitably worthy aspirations towards justice for those whose interests it represents but no remotely credible stratgies as to how it expects, in practice, actually to fulfil those aspirations. Lobbying doesn’t work. Writing to the regulator doesn’t work. Responding to “consultations” doesn’t work. So what next?

    In response to this latest consultation, APFA has asked businesses whether regulators’ actions should have a regard for growth. Businesses? Why? Does it really expect any businesses to say no? Were any to do so, it’d be rather like turkeys voting for Christmas.

    And what’s the point of asking anything of the Dept. of BI&S? It created the Statutory Code of Practice for Regulators but refuses to accept any responsibility for enforcing it. No other body does either. Pat McFadden wrote the foreword to that piece of legislation and is now on the TSC but behaves as if he’s never heard of it. Has it not occurred to Lord Deben (John Selwyn Gummer), who sits on the APFA council, to tackle McFadden as to why the FCA, like the FSA before it, remains apparently free to ignore the Code? And even if he does, what can or will he do if McFadden just brushes aside his question by saying he now has other, more pressing issues on his plate?

    It’s almost as if the Code is nothing more than a bit of well intentioned, nicey-nicey waffle, of which no body is actually prepared to take any sort of ownership. What was the point?

    Unless APFA radically changes its gameplan and sets out an itinerary of credible strategies to accomplish its objectives, its membership will continue to decline and it will continue to fail to attract any new members and funds. It’ll melt away like a puddle in the desert and the few sprigs of green that sprouted whilst it was there will just curl up and die. It’s already happening.

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