View more on these topics

Apfa: FCA is wising up to cost of regulation in new Mission document

Chris-Hannant-2012-700x450.jpg

The FCA recently launched a consultation on its Mission. I tend to be sceptical of grand statements and must admit I inwardly groaned when I first heard the idea. But having read and discussed it, there is far more value to it than your average cynic might expect.

Many firms operate in a vacuum of contact from the FCA, making it hard to know what to expect. By writing down how it will act and what it will do, it gives us a basis on which to judge its behaviour and hold it to account.

As part of the exercise, it is seeking to set out better metrics to measure its performance, too. This can only be a positive step. Moreover, it is asking for our views in determining all this. Obviously, the statutory framework dictates the scope of choice but we have an opportunity to influence the regulator’s strategy to go about its business and measure its performance.

It will also give us a better idea of what it expects from firms and consumers. It is time the FCA set out what responsibility it assumes the consumer to bear.

While the document notes many consumers will simply not read disclosure documents, it must be clear they have a responsibility to read the basics; for example, key facts documents or the essentials of a suitability report.

Setting standards of behaviour here would give us a better framework of expectations the Financial Ombudsman Service should then operate within. Recognition of reality is welcome.

We are seeing some genuine new thinking about the FCA’s approach to regulation. The Mission document is the first time I have seen it acknowledge that regulation imposes a cost ultimately borne by the consumer.

Chris Hannant is director general at Apfa

Recommended

3

Mission critical: The FCA’s roadmap to better reguation

The FCA’s new mission statement may be “the missing piece of the regulator’s jigsaw”, but experts are questioning what impact it will have on how the watchdog works. The regulator launched a consultation last week as part of chief executive Andrew Bailey’s plans to set out the FCA’s new “mission”. The FCA wants the mission to […]

6

FCA chief: New mission is not a ‘political shield’

The FCA’s new mission statement is not meant as a “political shield”, the regulator’s chief executive Andrew Bailey has said. It is also not about “repositioning” the regulator, but will better explain what the regulator does and why it does it, Bailey has said. The FCA published the consultation today, describing it as a set of principles […]

Andrew-Bailey-BBA-Conference-2012-700x450.jpg
11

FCA looks to target unregulated firms in new ‘mission’

The FCA is eyeing action on unregulated firms and vulnerable customers as it sets out a new “mission”. The FCA today began a consultation on its mission document, a set of principles that will inform the regulator’s strategy and day-to-day work. The FCA says the purpose of the mission is to give clarity over the objectives […]

Global income: preparing for a rate rise…

In the five years since we launched the Artemis Global Income Fund, its manager Jacob de Tusch-Lec has built a distinctive portfolio that is first among its peers. Here he explains why his “quality, cyclical and value yield” stocks, and flexible approach, leave the fund better placed to benefit from uncertainty than funds that depend […]

William Littlewood “betting that QE won’t work”

Journalist Alexis Xydias interviews Artemis manager William Littlewood about his views on bond, equity and currency markets and the impact of a Greek exit from the EU. With bond yields at “ludicrous” levels, William believes a tipping point for bond markets is sure to come. As a result, his Strategic Assets Fund holds government bond shorts to the tune of 100 per […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. The best “opportunity to influence the regulator’s strategy [about how to] to go about its business and measure its performance” is to seek to hold it to the requirements of the Statutory Code of Practice For Regulators from which, to date, the FCA has granted itself a unilateral and total opt-out. Why do we never hear anything about this from APFA?

Leave a comment