View more on these topics

‘Confidence comes from transparent and fair market’

Consumer groups have called for the Financial Conduct Authority’s strategic objective of ensuring confidence in the markets to be replaced with one which outlines how the market should operate.

Under current proposals, the FCA’s strategic objective is to protect and enhance confidence in the UK financial system.

Giving evidence to the Treasury select committee last week, Which? chief executive Peter Vicary-Smith said the objective needs to be reformed.

He said: “Confidence is an outcome, not an input. The strategic objective should be about a fair and transparent financial market and confidence will come from that.”

Consumer Focus chair Christine Farnish said the strategic objective should ensure markets are “effective and efficient”. She said the competition objective could lead regulators to be risk-averse and not intervene in problems in case it undermines confidence.

Citizens Advice Bureau chief executive Gillian Guy said the objective should include a commitment to fostering financial inclusion.
In a Treasury select committee hearing earlier last week, FSA chairman Adair Turner also called for the strategic objective to be changed. He said it should be based on “efficiency, fairness and consumer protection”.

The FCA is set to discharge its duties in a way which promotes competition unless it clashes with its other objectives. The TSC and the Independent Commission on Banking have both called for this to be made a statutory objective.

Recommended

LV= launches guaranteed investment-linked annuity

LV= has launched a guaranteed annuity product which allows investors to lock-in investment growth. The Pension Income Plus Annuity allows clients to select an assumed investment return of between 0 and 4 per cent on their policy. Investors are protected from falls in investment returns by a minimum income guarantee. If investment yields improve the […]

King backs bid to make BoE more accountable

Bank of England governor Mervyn King has told MPs he would back the creation of a new Parliamentary committee to boost the bank’s accountability. Under proposals in the draft Financial Services Bill, the bank’s powers will be extended considerably. The Prudential Regulation Authority and the financial policy committee will be based in the bank, alongside […]

18

Nic Cicutti: Aifa turning into modern variant of LIA

A few weeks ago, when writing a column about Neil Liversidge and his “open letter debate” with Radio 4’s Money Box presenter Paul Lewis, I praised him for the trenchancy with which he defends the IFA corner. Neil, I wrote, “is one of the few Aifa representatives with any credibility among rank-and-file advisers. The danger […]

FSA admits lack of clarity over SPS withdrawal

The FSA has admitted it is not yet clear what will happen in cases where accredited bodies withdraw statements of professional standing from rogue advisers. Advisers will have to hold an SPS under the RDR to certify they have reached minimum qualification standards. SPSs will be issued by accredited bodies. The Chartered Insurance Institute, of […]

Value for money in DC pensions

The Pension Policy Institute (PPI)’s recent report “Value for money in DC pensions” tries to identify factors by which people can assess whether their pension offers fair value for money (VFM). Fiona Tait provides an overview of the findings. Positive Outcomes It is extremely hard to assess VFM in a pension. Press activity naturally focuses […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment