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FCA: Firms involved with Woodford ‘not following spirit of rules’

Andrew-Bailey-PRA-2013-500x320.jpgFCA chief Andrew Bailey has accused  some firms involved with Woodford’s suspension of not following the “spirit” of the regulators rules.

Speaking at the FCA’s annual public meeting this morning, Bailey said culture and accountability was becoming increasingly important to the regulator over box-ticking exercises and a overly-tight interpretation of the rules.

Bailey said: “Any organisation that prioritises being within the rules rather than doing the right thing will not stand up to scrutiny for very long.

“Taking Woodford as an example, firms appears to be following the letter of the rules but not the spirit”.

FCA asks if Hargreaves acted fast enough on Woodford

Bailey did not go into further detail on which firms he was referencing on what aspects of the rules they appeared to be toeing around.

However, he spoke at length on the FCA’s “regulatory perimeter” – what it has jurisdiction over when it comes to  authorised and unauthorised products and firms, labelling it something that “links together some of our most challenging issues”.


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There are 9 comments at the moment, we would love to hear your opinion too.

  1. Uuummm !!!

    I do get which direction his (Baileys) train is entering the station but which platform is it going to dock ?

    So conducting your business within the rules and regulations is not good enough ? now we should relax the rules (when needs be !) enter into the spirit of things, like some hippy love in ?

    Right oh ! time to break out the loom pants, joss sticks, and crystal ball !

    Is it little wonder, with all the forward, backwards, and sideways moments coming out of the FCA, we wander around Waterloo station like some snaggle toothed hill billy looking for his hound ?

  2. In just what way are some firms involved with Woodford’s suspension not following the “spirit” of the regulator’s rules?

    Not that anyone at the FCA fully knows or understands its own rules anyway. How could they when the rule book is so vast, so labyrinthine and its contents so open to varying interpretation?

  3. take the high road 17th July 2019 at 12:43 pm

    @ D H…couldn’t have summed this up better…and with such satire!

  4. How ironic! We are all told that in the “spirit” of EU regulation we must adhere to the box ticking rules because that is how Napoleonic law works.

    Now, because it suits them, the FCA amongst many others says well actually folks you are meant to use your judgement and follow the “spirit” of the rules even though judgement was thrown out with baby a long time ago because none of us can be trusted whether it was giving financial advice or signing off accounts!

  5. Sounding more like the opening and closing edits of TV sitcom SOAP every day.

    For those under a certain age these were: “Confused? You won’t be, after this week’s episode of…Soap.” and “These questions—and many others—will be answered in the next episode of…Soap.”

  6. As usual, as clear as mud. Perhaps the regulator needs to give some guidance on which rules (normally an objective judgement) can be “less strictly” applied in favour of “doing the right think” (a subjective judgement with which the regulator may disagree). #beyondfarce #headsyouloose-tailstheywin

  7. Anarchy in the (FCA) UK anyone?

  8. The spirit? Mines a double scotch, thank you.

  9. Bailey said: “Any organisation that prioritises being within the rules rather than doing the right thing will not stand up to scrutiny for very long.”

    Which is presumably why the FCA fail so often.

    I have seen, and continue to see, plenty of examples of blinkered adherence to rules and the letter of the ‘law’ coming out of the FCA. That is despite them agreeing on occasion that complying makes no sense, doesn’t help consumers, and is a waste of time, effort and money.

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