View more on these topics

FCA chief warns of higher regulatory costs

Martin Wheatley 480

Financial Conduct Authority chief executive designate Martin Wheatley has admitted the regulator’s expanding remit will inevitably lead to higher industry costs.

Speaking at a briefing on the FCA in Canary Wharf last week, Wheatley said the regulator is taking on more responsibilities such as supervising consumer credit and a new competition objective but none of the FSA’s existing remit is being taken away.

He said: “Frankly nothing that has been written into the law, or that is being asked of us, is to stop doing anything. The requests being made of us are, can you operate in this space, can you take on competition, can you take on consumer credit, will you be more intrusive.

“Clearly that comes at a cost. I have worked very hard to try and minimise the additional costs to the industry both this year and going forward. We have got a set of practitioner panels we have talked to about our cost structure and we explain to them what the drivers of our costs are, where we can control them, and where there will be additional costs.”

Asked by Money Marketing what reassurances he can give firms about spiralling regulatory costs, Wheatley said: “The only commitment I can give is I will try as far as I can to maximise the productivity of this organisation and avoid ballooning costs, but the simple fact is with more responsibilities and not being asked to drop anything, there is going to be more cost.”

Informed Choice managing director Martin Bamford says: “We have reached a point where the level at which regulatory costs are rising is just ridiculous. To hear from the incoming regulator we are going to see more cost increases is worrying.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm