View more on these topics

Martin Wheatley: FCA will ‘shoot first and ask questions later’

Financial Conduct Authority chief executive designate Martin Wheatley says the new regulator will work on a “shoot first and ask questions later” basis, ahead of a document next month which will set out the new regulatory approach.

Speaking at an Association of British Insurers conference on conduct regulation in London this morning, Wheatley (pictured) discussed the new powers the FCA will gain under the new regulatory structure, such as publishing warning notices at an earlier stage and the power to intervene in risky products and ban them from being sold. He said the product intervention powers are not expected to be used frequently.

But he said: “The key difference between the future and now, and forgive me for being scary in my use of analogy, is we are being given the power to shoot first and ask questions later. Today’s approach is we find a problem and do lots of analysis, then we publish a set of draft rules and do a cost benefit analysis, we consult with the industry and you tell us we have got it wrong, and we publish another set of rules. A year later we get to the point where we think we got it right first time. We have got to reverse that process.

“The presumption is we will step in to make temporary banning orders, where products or certain features are removed, or removed from particular parts of the market, and then we will do the consultation and cost benefit analysis.”

The FSA will publish an “FCA approach” document next month which will set out how the FCA will differ from the FSA, what the new regulator can expect of firms and what firms can expect of the FCA.

Wheatley said the document will set out in detail the FCA regulatory approach to issues such as supervision, policy, authorisations, enforcement, and the regulator’s new powers.

He said: “Next month’s document will tell you how we intend to deliver against our objectives, how we intend to make sure markets work well in the interests of consumers, what we expect from firms, and how business models will be evaluated against the objective of good outcomes against consumers.

“It will also set out how our thinking is evolving in terms of the use of product intervention powers, competition powers, and some of the new aspects of regulation we are being asked to take on under the new bill.”

Recommended

1

Buy-to-letwatch

A tougher underwriting process has made turnaround times for offer applications unavoidably lengthy, so brokers and lenders must each do their bit to process offers in a timely fashion

Chelsea cuts rates across product range

Chelsea Building Society is making rate cuts across its product range from Thursday. The cuts will affect selected fixed rate and tracker mortgages at 70 per cent and 90 per cent LTV while £500 cashback products are also being introduced to help purchasing and remortgaging customers. A two year fixed rate mortgage at 70 per […]

Principality BS joins the Buy to Let Business Mortgage Club

Principality Building Society has today joined the Buy to Let Business Mortgage Club’s lender panel. A 3.69 per cent BTL two-year tracker mortgage is now available as a shared exclusive, available for purchases and remortgages up to 60 per cent LTV and with a 1 per cent arrangement fee and £99 mortgage commitment fee. The […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Keith hHckman 19th September 2012 at 9:42 am

    Chris, beware the “baby faced assasins”!

  • Chris Gardner 18th September 2012 at 3:48 pm

    So, Martin Wheatley is the new Sheriff in town, to take his analogy one step further. What I see is another grey haired, middel aged career bureaucrat looking to make his mark.I think the job should have been given to a woman – a different perspective is what is needed and i see history simply repeating itself.

    BTW Martin, you apolgoise for being “scary” – I dont think yuo could be scary if your life depended on it. Have a look in the mirror.