New FCA boss: ‘I’ll shoot first and ask questions later’
Incoming Financial Conduct Authority (FCA) boss Martin Wheatley told the ABI yesterday that he would ‘shoot first and ask questions later’ when it comes to banning products.
Wheatley said tough new powers would enable the FCA to ban products immediately and then do the probe later.
Currently, the regulators have to undertake a year of research before banning products.
The super aggressive approach promised by Wheatley is mainly focused on the banks, but insurers and brokers will also fall into the net if they’re deemed to be mis-selling products.
Speaking at the ABI Conference on financial conduct yesterday in London, Wheatley said: “The key difference between the future and now is we are being given the power to shoot first and ask questions later.”
The tough new language follows on from his vow last month to get tough on commission-based products where staff are incentivised to sell to customers at all costs.
However, Wheatley’s ‘shoot first and ask questions later’ approach sparked a backlash.
Arun Srivastava from Baker & McKenzie said: “It is dangerous to take this approach as it implies the FCA could act without justification.
“A firm may come out unscathed by the regulator at the end of the process, but if this is done publicly and their name is dragged through the mud, faith in the institutions may be undermined.”
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