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FCA chief Martin Wheatley warns of higher regulatory costs

Financial Conduct Authority chief executive designate Martin Wheatley has admitted the regulator’s expanding remit will inevitably lead to higher industry costs.

Martin Wheatley 480
FCA chief executive designate Martin Wheatley

Speaking at a briefing on the FCA in Canary Wharf today, Wheatley said the FCA is taking on more responsibilities such as the supervision of the consumer credit market and a new competition objective but none of the FSA’s existing remit is being taken away.

He said: “Frankly nothing that has been written into the law or that is being asked of us is to stop doing anything. The requests being made of us are, can you operate in this space, can you take on competition, can you take on consumer credit, will you be more intrusive.

“Clearly that comes at a cost. I have worked very hard to try and minimise the additional costs to the industry both this year and going forward. We have got a set of practitioner panels that we have talked to about our cost structure and we explain to them what the drivers of our costs are, where we can control them, and where there will be additional costs.”

Asked by Money Marketing what reassurances he could give firms about spiralling regulatory costs, Wheatley said: “The only commitment I can give is I will try as far as I can to maximise the productivity of this organisation and avoid ballooning costs, but the simple fact is with more responsibilities and not being asked to drop anything, there is going to be more cost.”

The FSA will publish the FCA business plan for 2013/14 next week which will set out the new regulator’s priorities and its budget.

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  • Bobby 26th March 2013 at 1:01 pm

    What a farce. Have any of these leeches taken a pay cut ? cut their own cloth ? NO ! In top dollar offices in London, embossed water bottles and champagne lunches and hospitality days with their banking chums ( their next employers ), Hector Sants anyone. It is as corrupt as Nigeria, if not more so. Still as long as they can boss around a one man band mortgage broker and rap him for not issuing an idd before he did a mortgage quote, that is important eh FSA/FCA. Just a sick sick joke.

  • Phil 25th March 2013 at 11:45 am

    The word Greedy comes to mind. Move to a cheaper part of the country and cap your own salaries first. If you keep pushing prices up yet more decent brokers will leave this ever shrinking industry and yet more bank staff will lose their jobs.

  • Shane 22nd March 2013 at 6:05 pm

    Wow, unbelievable! More money, take a look at yourself, plush offices in an expensive area, not required – relocate, higher salaries than the people that run our country – ridiculous. Generous salary structure and sick pay for all staff – public sector, quango gravy train. Which platform do I have to stand at to get on, is is 9 1/2? Put your house in order before asking for more. If only you had to answer to someone perhaps you then take action. You would not get away with this in the private sector.

  • Gary 22nd March 2013 at 4:00 pm

    The 1st thing everyone always wants is MORE MONEY. Unfortunately I have less money now than ever before.
    However I have solution.
    Please Mr Wheatley can I have a job:)

  • Chris Hulme 22nd March 2013 at 2:45 pm

    Sorry Mr Wheatley but clearly this shouldnt come at additional cost. The FCA needs to address its budgets and cut the cloth according to the industry capability the FSA has destroyed.
    This industry has shrunk in size of contributors to the regulatory governors. You cant simply keep saying “more more more”, expecting those that remain to cough up for the mistakes if those who have exited the industry in shame.
    ENOUGH IS ENOUGH!!