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Letter to the editor: FCA in a spin over financial crisis

I was much intrigued by the letters relating to disclosure in the Money Marketing edition of 18 April.

The intrigue was triggered by an article by Tim Harford in the FT Magazine, 20 April, outlining a research project undertaken by the FCA, highlighting the benefit of clear and brief correspondence.

To suggest that the regulator is monumentally two faced perhaps understates its duplicity. It presents one message to the public, though I cannot find the relevant research paper on the FCA web site, and a contrary message to advisers.

I suspect that it was not so much facing the wrong way at the time of the financial crisis as spinning like a top.

Glen McKeown

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 2nd May 2013 at 1:03 pm

    The 10,000 page book of rules that the FCA has inherited from its predecessor is hardly helpful either. As Alasdair Sampson has pointed out, it’s so vast, so labrynthine, so complicated and so open to various interpretations (by regulators as well as the regulated) that actually complying with it all is a practical impossibility.

    Was it really necessary6 for the FCA to spend our money commissioning a research project, highlighting the benefit of clear and brief correspondence which, one might reasonably assume, would be manifestly self-evident to anyone with half an ounce of common sense.

    Says the Code: Our [that of the government body that created it] expectation is that as regulators integrate the Code’s standards into their regulatory culture and processes, they will become more efficient and effective in their work. They will be able to use their resources in a way that gets the most value out of the effort that they make, whilst delivering significant benefits to low risk and compliant businesses through better-focused inspection activity, increased use of advice for businesses, and lower compliance costs.

    Yet, on the issue of costs, all Martin Wheatley’s told us so far is that the FCA is going to be EVEN MORE expensive than the FSA.

    Which, yet again, points to the need for an Independent Regulatory Oversight Committee. What are you doing on this front APFA, given that you have on your board a member of the House of Lords?

  2. clear and brief correspondence?
    If you look for something on the fca website, you are encouraged to click a link for more information and then another link for further information and so on and so forth.2 hours later you are still not sure you have found what you are looking for.
    The FSA insisted we should record in minute detail why a recommendation was made. We do it now to cover our backsides against CMC’s and hindsight reviews.

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