6
A NEW APPROACH.
What the FCA can do for you and your clients.
Consumer protection is the benchmark of any fair financial
“Taking a proactive approach is something else that marks us
services system. And the recently established Financial
out as different. We want to spot risks and intervene before
Conduct Authority (FCA), with its new range of powers,
situations become more serious. And it’s in this area in
is dedicated to delivering effective regulation and ensuring
particular we want to work more closely with you, the debt
an appropriate level of support for all users.
advice industry, so if you do see a concerning trend, please tell
Established last year to replace the Financial Services
advisors – around the work we do to create lasting dialogue.”
Authority (FSA), from April 2014 the government-established
us about it. We are also keen to raise awareness – among debt
body will also assume control of Consumer Credit Regulation,
So what is the FCA’s approach?
taking over from the OFT. Here Craig Simmons, part of the
Craig says: “We are looking to promote better standards
FCA’s Consumer and Markets Intelligence Team, outlines
across the industry, ensure effective regulation and, where
their plans and explains how he hopes debt advisors can
necessary, enforce our rules, in several key ways:
contribute to their success.
He says: “We were set up to regulate the financial services
Authorisation
“All firms will have to be authorised, providing a ‘gateway’
industry in the UK and ensuring firms ‘treat customers fairly’
to financial services for companies and individuals holding
is one of our key aims. We are more consumer-focussed
positions of ‘significant influence’ within them. To be
than the FSA, so we look at how firms work with clients and
authorised, firms are assessed against the standards
how consumers are protected.
we expect; known as the threshold conditions.
“We’re funded by a levy on the 26,000 financial services firms
we regulate across the UK and, from April 2014, when we
take over Consumer Credit regulation, this will increase by
another 35,000 firms.
Supervision
“Once a firm enters the industry, we will ensure they
comply with the standards through periodical reviews.
Firms deemed ‘higher risk’ will be monitored more closely.
We also have the resources to be reactive.
“ We were set up to
regulate the financial
services industry in the
UK and ensuring firms
‘treat customers fairly’
is one of our key aims.”
Craig Simmons, FCA.
Thematic Review
“We can look at whole sectors or product types. At the
moment we’re reviewing how mortgage lenders are treating
customers in arrears and we welcome suggestions about
other areas to examine.
Enforcement
“We have fairly wide-ranging powers of enforcement –
stretching from fines to criminal action – and we know these
measures act as a deterrent. Ultimately, we can take away a
company’s or individual’s authorisation to work in the industry.
6
UKAR ARENA WINTER 2013