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Report demands cultural change at FCA and PRA

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A report has accused the two leading British financial regulators of a lack of transparency and “group-think.”

The study by Cass Business School and the New City Agenda think tank argues that cultural issues at the FCA and Prudential Regulation Authority must be addressed by politicians and that “unless we change the culture of regulators we will be sleep walking into the next financial crisis.”

The report says: “There is a clear and present danger that we will repeat the mistakes of history. Much needed change is already being watered down. The attention of politicians has moved on.”

“Regulators need to redouble their efforts to change their culture and move away from the bureaucratic and ineffective approaches of the past.”

The report also hits out at an apparent six-fold increase in regulators’ administrative costs since 2000, which now stand at £1.2bn a year.

The authors argue that a culture of “box-ticking” imposes additional costs on smaller firms.

The report says: “A deep seated culture of box-ticking had developed in the UK’s financial regulators. Instead of concentrating on the big issues, regulators spent valuable time adding ever more detailed rules and procedures and giving consumers ever more complicated information. This is likely to increase confusion and cost rather than establish clarity.”

“Complexity and box-ticking benefit lawyers and gives a veneer of reassurance, but it increases costs and makes regulations more difficult to understand and enforce and easier to manipulate or avoid. It also distorts competition. Big firms have armies of officials and a close relationship with the regulators to help navigate this complexity. Smaller firms and new entrants often find themselves reeling from the complexity, with only a call centre at the regulator to help them out.”


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Lenders to review systems to comply with FCA arrears guidance

Mortgage firms are expected to review their policies and systems to ensure that they comply with the findings of the FCA’s guidance on mortgage arrears remediation announced earlier today. FCA director of supervision, retail and authorisation Jonathan Davidson said that in the future the authority would look to “ensure all systems are reviewed when considering […]


CML takes action ahead of FCA remediation shakeup

The Council of Mortgage Lenders has welcomed the Financial Conduct Authority move to consult on mortgage arrears remediation guidance and says it is “committed” to working with the regulator on the issue. The trade body says its members will take the initiative and contact any affected customers to pay compensation. The CML says it would […]

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FCA to consult on mortgage arrears remediation guidance

The Financial Conduct Authority has identified a number of firms that have automatically included customers’ arrears balances in mortgage payments and is to create guidance on this practice. The authority will consult on the matter from today, 19 October, for three months to create guidance covering remediation for mortgage customers who may have been affected […]

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Survey looks at the challenges facing businesses post auto-enrolment

A survey conducted by Johnson Fleming at the Pension & Benefits Show 2014 highlighted the key challenges faced within organisations post auto-enrolment. The results showed that communicating the changes and the value of them to staff, and receiving timely data from the payroll provider proved to still be the most challenging aspects of managing an auto-enrolment scheme.

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White paper — Qatar International Insights

Jelf Employee Benefits highlights new legislation, key requirements and policy considerations when structuring international private medical insurance (IPMI) for expatriate employees in Qatar. This edition will be of particular interest to global human resource directors, compensation and benefits specialists and mobility managers who have employee populations in Qatar.


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