‘Acknowledge role in failure of firms,’ Gummer tells regulator

The FCA should take greater responsibility for regulated firms which fail, says IFA trade body chairman John Gummer.

Speaking at the Apfa annual dinner in London last week, Gummer said the FCA should “recognise its own responsibilities” in approving firms, and should bear the cost when things go wrong.

He said: “A regulator has a real responsibility for having said this company is accredited.

“One of the problems in the past has been that accredited firms – sometimes accredited against all the advice of the industry – collapse, and the industry has to pay the cost.

“That is the unfairness which most affects our members.”

Gummer also said the FCA and professional bodies need to focus more on “gatekeeping” and approving only the right people.