FCA overseer calls for regulator overhaul

The FCA Practitioner Panel, which oversees the regulator, has called on the FCA to improve its communication, regulate more predictably and do more to ensure fair competition.

The call follows the findings of the panel’s survey of financial firms.

FCA Practitioner Panel chairman Graham Beale said: “With the FCA only a month old, these survey results provide important feedback on the expectations of firms for the new regulator.

“If the FCA gets this right, there will be benefits for consumers and the economy as a whole, as well as for the financial services industry.”

FCA chief executive Martin Wheatley said: “The survey is a valuable snapshot of how firms view regulation. From this last survey undertaken at the FSA, it is clear that firms believed there are some areas that could be improved. As the FCA, we have changed our approach and the way we regulate, and we are becoming a more forward-looking, predictable and engaged regulator which acts from a position of greater understanding of the industry.”

Wheatley added that the FCA is working on how it can ensure fair competition in financial markets. It will launch a dedicated unit on this later this year.

The survey found that:

• 70% of firms were confident the FCA would protect consumers well
• 28% thought the FCA would promote good competition
• 20% of survey respondents were withdrawing from certain markets due to regulation
• 80% of those surveyed said clearer regulation was important.