Practitioner Panel biennial FSA survey reveals disappointing results...
Financial services firms' satisfaction with the work of the FSA has shown little sign of overall improvement over the past two years, according to the fourth biennial survey of the regulator's performance by the Financial Services Practitioner Panel, published today.
Over 4,000 firms responded to the survey, for the first time also capturing the views of the newly regulated mortgage and general insurance (M&GI) firms.
Roy Leighton, chairman of the panel, said: “Even though our survey has identified a number of specific areas where the FSA has improved at a day-to-day level… it is perhaps disappointing that – other than on the wholesale and major groups side - overall satisfaction ratings of the FSA by the firms it regulates have not much improved.”
Leighton said that if the FSA was to achieve its “regulatory goals” its is critical that it tackle the key elements of its strategic plan are made clear, particularly in relation to the retail sector and that they “meet the legitimate expectations of the industry that it regulates."
According to the survey, while firms continue to support regulation and recognise its benefits, their overall satisfaction with the work of the FSA has shown little or no sign of improvement. The smaller retail firms' overall views (which make up some 80% of the firms regulated by the FSA) of the FSA have deteriorated, despite steps taken by the FSA to make itself more approachable.
While principles-based regulation and the Treating Customers Fairly (TCF) initiative concerns centred on how the FSA will implement their new policy approach to the retail market.
Recent FSA initiatives like TCF, combined with a flurry of EU regulation, have still left 85% of firms with the impression that the level and costs of regulation will continue to increase.
However, those surveyed recognised that the FSA has delivered improvements in several of its day-to-day interactions with firms, highlighted as problem areas in previous surveys.
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