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The 8 ways the FCA will measure success

FSA Building Front View 480

The FSA has set out eight key success measures the Financial Conduct Authority will look to achieve in its first two to three years.

In its Journey to the FCA document, published today, the regulator has set out a list of criteria it will use to measure its success against.

The document says the FCA will look to successfully intervene earlier to the benefit of consumers, will deal quickly and efficiently with ‘crystalised risks’, be involved and engaged with stakeholders to ensure consumers are central to processes and address competition issues to the benefit of consumers.

FCA8successmeasures
The eight key success measures the FCA is considering

The regulator adds the FCA will look to successfully influence international policy, deliver judgement-based early intervention regulation, make sure all objectives are met on a ‘business as usual’ basis and encourage positive cultural change in financial services firms.

It says: “Our focus will beon getting better outcomes for consumers, whether this means getting compensation quicker, or identifying problems earlier before they can cause significant harm. This will take time as we will have past problems, such as PPI and interest rate hedging products, to deal with.

“At the same time we will continue to develop our model for delivering forward-looking judgement-based supervision.”

The FSA says it will evaluate the impact of major policy initiatives in an attempt to make it more accountable, provide management with information to make decisions and provide its board with information needed for effective oversight.

The FCA says it will set out further details of its plan for the coming year in its business plan to be published in March.

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Comments

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

  1. Nicholas Pleasure 16th October 2012 at 2:02 pm

    All total b*****ks and completely unmeasurable. No mention of fairness, proportionality or justice for those it regulates. No mention of accountability for its own decisions.

    Business as usual boys.

    The king is dead, long live the king.

  2. The real 8 measures of FCA success.

    1. No access to advice for those earning less than £50K
    2. All small IFA businesses wiped out.
    3. Continuing to ignore the business as usual non RDR business model of some large “advice” companies.
    4. Most financial services bought online without advice.
    5. A massively increased welfare state as no-one encourages the public to buy life insurance, income protection, pensions etc.
    6. A falling stockmarket as fewer people place money in asset backed investments.
    7. A headquarters stuffed with fine art and the best biscuits money can buy.
    8. A knighthood and 7 figure salary for Mr Wheatley.

  3. I agree with all of the comments above. I’m an example of one of them. I’ve been an adviser since 1986 and am closing the doors at the end of the month as the new network fees have been trebled.

    All the best, last one out switch the lights off.

  4. All that’s changing is the name over the door and even more twattery. Mr Cameron promised better than this, but so far isn’t delivering it.

  5. I welcome a stricter regulation regime but it does strike me that woolly wording like this is more of the same from the old FSA who had principle-based rules. Just tell advisers and people in finance what they can and cannot do rather than giving woolly framework that is open to interpretation.

  6. Nicholas Pleasure 16th October 2012 at 4:19 pm

    @Peter Herd

    Absolutely right.

    A clear, strict regime that is applied in a fair, just and transparent way in accordance with the rule of law would be supported by many in our sector.

    Currently we have an FSA that is police force, investigator, judge, jury and keeper of all fines. If the checks and balances under which we live our normal lives could be applied to our professional regulation I believe that financial services, consumers AND THE REGULATOR would all benefit.

    Will we get that with the FCA? I won’t hold my breath but it would be great to think so.

  7. As far as I’m concerned the only thing that succeeds in this case is a budgie.

    What a load of ‘management speak’ tripe.

    And for gawd sake stop using the Blair term ‘stakeholder’ I hate it. If you mean actively involved with the industry why don’t you just say so. And please don’t use the word engaged. I’m not about to marry you – and you never asked in the first place. Anyway involved and engaged in this sense is the same meaning – so stop padding out sentences with unnecessary words. Did none of you do O Level English?

  8. RegulatorSaurusRex 17th October 2012 at 7:36 am

    A much better headline:

    “The 8 ways the FCA will measure failure.”

    SIB, FSA, FCA… same old same old

    “It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.”

    Thomas Sowell

  9. Unfortunately the ridiculous nature in which the FSA regulated the industry has created far more problems than it ever solved.

    One of the main problems smaller IFA firms will find is obtaining PI insurance cover.

    As for:

    “Better outcomes for consumers” – the FOS actively look to uphold complaints in favour of the consumer in the manner of a claims management company.

    “Identifying problems earlier” Following my own dismay at Northern Rock’s attempt to charge an additional £250 per month to a personal loan for PPI cover I wrote to the FSA and highlighted the nature of this practice. Not even the courtesy of an acknowledgement from the FSA. Just about summed up their arrogance.

    All we need are simple rules written in black and white – no shades of grey – reduce the size of the FSA handbook so we can pick it up and find out what to do and how to do it without the assistance of a legal expert.

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