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Tyrie: ‘Wonderful opportunity’ to improve FCA accountability

Treasury select committee chairman Andrew Tyrie has told financial services firms they have a “once in a generation opportunity” to improve the accountability of the Financial Conduct Authority and its interaction with the industry.

Speaking at the Association of Private Client Investment Managers and Stockbrokers annual conference this week, Tyrie said that although responses to the TSC were due on Monday, it is not too late to hand in submissions.

He said: “We have a really wonderful opportunity to sort out conduct of business regulation. Too much regulation in the past has been box-ticking rather than digging into the root causes of regulatory risk. We must get it right this time. Although we have to work to the deadlines, I would urge people to get submissions of evidence in as a matter of urgent priority.”

The committee’s inquiry, launched in July, focuses on the FCA’s objectives, powers and accountability, plus how it interacts with other financial regulators.

Tyrie also urged firms to send them information about the costs incurred due to regulation and how much is passed to clients, so the TSC could do an analysis of the cost of regulation.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Joe Egerton - Justice in Financial Services 13th October 2011 at 12:54 pm

    Andrew Tyrie is right. We have already put in evidence to his inquiry and would be interested in cooperating with others. Our central message is that the House of Commons must regain control. To join us: email joe@justiceinfinance.org

  2. It’s worth remembering that the American War of Independance started with a cry of “no taxation without representation”.
    The situation with IFAs has now been proven to be similar as many have explained and pointed out to the TSC.
    We are being taxed by the FSA (FSA fees) and yet our elected representatives via the TSC have NO control over the FSA and their only option is to change the law.
    Laws are also being desigend which only apply to Financial Advisers and NOT Solicitors, Accountants, Politicians, Criminals or ANY OTHER UK citizen.
    We cannot vote for change (we did that already and removed the architect of the FSA one Golden Brun).
    What should be our next move?

  3. What will be the point. We have already submitted evidence re the RDR and the TSC has admitted it is powerless against the FSA.
    The TSC also asked the regulator if it would be willing to look again at the longstop issue.
    The FSA are acting outwith the law and should have been compelled to act within the law.
    We have enough to do without wasting time on yet more time consuming exercises with fruitless results.
    The FSA rules.
    The TSC is powerless.
    End of.

  4. Although I quite understand the evident frustration expressed by the two previous anonymous posters, Joe Egerton is correct in stating that the House of Commons must somehow regain control. All of us know that robust financial regulation is important but the fact that the FSA does exactly what is feels like doing is not right or constitutional. It is important that we make our voices heard or the FCA may well decide to push the intimidation up to another level. I suppose in the end there won’t be many people left to regulate but that seems a sad outcome if it is avoidable.

  5. How can the TSC regain control over that which it has no control ?

  6. Dear Mr Tyrie,

    I have just spent practically a whole day on a really complicated 18 page suitability report regarding an 88yr olds investments and how to restructure them to acheive her objectives within a trust etc.

    I know full well that neither she or her son will read the report properly, however as I intend to get this case pre-approved by the network I’m involved with. It needs to tick all the right boxes.

    Most of the regulation we go through is complete & utter balderdash… I mean can anyone tell me why referring a client to the KFD & Illustration is no longer acceptable to the FSA, but instead endless reams of information have now to be regurgitated into another piece of paper?

    What is the cost? …. Oodles that’s what!

    Meanwhile I’ll console myself with the fact that somewhere the Chairman of the FSA is planning his next overseas jolly – Business class of course. Just think of the airmiles this lot clock up!

    Yours Sincerely – disgusted with financial services!

  7. The government has already announced that the FCA, like the FSA before it, will be accountable only to its own board which, of course, means accountable to nobody. Whatever he may receive in the way of “submissions”, how is Andrew Tyrie going to get that declaration overturned?

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