The Association of Professional Financial Advisers has challenged the Financial Conduct Authority’s ability to set its own performance targets and warned it will objectively measure the FCA’s success if the regulator does not.
The FSA published its Journey to the FCA document last month which set out a list of criteria against which the FCA’s success will be measured.
These include successfully intervening earlier to the benefit of consumers, dealing quickly and efficiently with “crystallised risks” and encouraging positive cultural change in firms.
Apfa, which rebranded from Aifa last week, says it is not normal for an organisation to measure itself against a benchmark that it has set, as the resulting targets may be ones that are easily met.
Writing in this week’s Money Marketing, Apfa policy director Chris Hannant says its response to the FCA document will call for the regulator to be measured against a more objective range of indicators. He says Apfa is prepared to set these if necessary.
Hannant says: “If the FSA’s conclusion is for a rather vague set of subjective measures, we will develop our own scorecard composed of the indicators we think will properly measure the performance of the regulator from an adviser perspective.”
Apfa’s proposed benchmarks include criteria such as saving levels and the cost of regulation.
Hannant adds: “If the FSA is not willing to provide a clear cut method for measuring its success, Apfa will.”
Plan Money director Peter Chadborn says: “If the regulator wants to earn industry respect, it will enter into a healthy dialogue about how success is being measured. Apfa also needs to prove its worth with regard to its effectiveness at holding the regulator to account.”