The FCA does not like the phrase “regulatory dividend” and believes all firms must pay their share of regulatory costs, says chief executive Martin Wheatley.
Speaking at the FCA’s annual public meeting in London today, Wheatley said the phrase is “banned from our lexicon”.
Apfa has repeatedly called on the FCA to deliver a regulatory dividend for advisers given the increased professionalism requirements under the RDR.
Responding to a question from Money Marketing, Wheatley said: “The regulatory dividend concept is something that fell out of favour because it was seen as us somehow giving firms an easier ride through the system.
“Our view is that all firms have to live up to the standard and therefore they should all contribute to the cost of providing a regulated market.”
Asked what assurance the FCA can give to rule-abiding firms that they are not paying for the bad practices of others, Wheatley said: “We try to run as tight a ship as we can within the very broad range of responsibilities we have. Our costs are recovered from the industry through the allocation of fee blocks.
“The Chancellor decided that our fines were an attractive means of revenue for the Treasury so that is no longer a means of offsetting our costs.”