City watchdog boss reveals it won’t lighten up on banks after Brexit, as it publishes new consultation to better protect at-risk consumers in ever-changing financial market
The boss of the City watchdog revealed today he would not back the slackening of banking red tape post-Brexit, as the regulator launched a new consultation to hone its work going forward.
When asked if he would support a relaxation of regulation following Brexit to make the UK more competitive, Andrew Bailey, Financial Conduct Authority (FCA) chief executive said: "No, I wouldn't support it."
"My strong view, and I've said a number of times, is that the thing that we can contribute to competitiveness is sound regulation," he added.
Bailey also baulked at suggestions politicians could pull the strings of his organisation, adding: "They've made us an independent organisation, they've given us the legislation and our job is to get on with and apply it."
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Releasing a consultation on its future mission today, the FCA called for feedback on various issues, including whether vulnerable consumers should be protected as a priority and whether it was taking the right approach as to when and how to intervene, particularly as products evolve to give consumers more control over managing their finances.
The FCA noted innovation in financial products, advances in technology and changes in legislation had created new pockets of vulnerable consumers where there never were before; for example, people falling victim of pension freedoms scams following the change in the rules for accessing retirement saving pots last year.
However, Bailey stressed the new mission statement was not intended to change the regulator's approach to being more City friendly or unfriendly.
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"This is not about repositioning," Bailey said. "This is about explaining what we do and how we do it."
The consultation has been released just a few days after a report from New City Agenda slammed the regulator for cultivating a culture of box-ticking and excessive red tape.
Bailey hit back, calling the report "pretty disappointing" in the way it looked at the watchdog's past rather than its future, and in at least one place, particularly when referring to the agency's staff, was "just downright offensive".
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Commenting on the document, Andrew Tyrie, chairman of the Treasury Committee, said:
At a quick read it looks like a robust attempt to give the FCA a much clearer sense of direction. It also attempts to identify what the FCA cannot reasonably be expected to do. Both are certainly needed. So is the greater transparency about its decisions and choice of priorities, promised in the FCA’s consultation document.
Tyrie added he would be quizzing Bailey on the contents of the consultation when the watchdog boss appeared before the committee next month.
The FCA consultation will be open for feedback until next January.