Financial Conduct Authority chairman John Griffith-Jones has hit out at powerful “vested interests” for strongly opposing its new approach to regulation.
Speaking at a Chartered Institute of Securities and Investment conference last week, Griffith-Jones said firms had been quick to “reach for their lawyers” to oppose FCA decisions in the regulator’s first 100 days.
Last week, former Bank of England governor Lord Mervyn King sounded the alarm over banks aggressively lobbying Government on capital requirements, saying they had “crossed the line”.
Griffith-Jones said: “Where the existence of a problem has not been established beyond all reasonable doubt we are finding ourselves bumping into very strong vested interests that are deeply entrenched and eager to reach for their lawyer if necessary.
“If you want proactive and preventative regulation there has to be some give and take on both sides rather than digging in at the first sign of disagreement over an outcome.”
FortyTwo Wealth Management principal Alan Dick says: “IFAs have generally been co-operative and the problem lies with big institutions focusing on short-term gain over long-term relationships.”