The Financial Conduct Authority must make a ‘quantum leap’ from the approach of its predecessor in order to deliver effective regulation for consumers, according to the Financial Services Consumer Panel.
Kay Blair, vice chair of the FSCP, says when the FCA comes into force after the Financial Services Authority has been disbanded, it needs to have the appetite and ability to use its new powers.
Speaking at the FCA Approach to Regulation Conference today, Blair says: “Over the last few years the FSA has undergone a sea-change in behaviour. However, if we are to see evidence of the new, more effective regulation the FSCP has advocated, a quantum leap is now needed.
“It will be critical for the success of the FCA that it moves quickly and decisively to signal a fresh approach to regulation.”
She says that the FSCP wants the FCA to take a proactive approach and address the root causes of misconduct rather than reacting once consumer detriment has taken place.
Blair says: “By addressing suspect business models and potentially toxic products, a more effective regulator will nip problems such as any future payment protection insurance mis-selling in the bud well before consumer detriment escalates and certainly before consumers have lost millions of pounds.”
She adds: “The FCA needs to encourage and recruit staff who are passionate about, and dedicated to, the delivery of enhanced consumer protection.
“We want to see the new chief executive officer Martin Wheatley drive an ambitious programme of change, building on the success of Hector Sants and Margaret Cole in recent years.”