The Treasury is currently consulting on the future financial services regulatory framework. This is our “once in a generation” chance to shape who regulates our industry with focus on their objectives and how they are “managed and controlled”. We have until 19 February to think through improvements needed.
At the same time, the FCA is reacting to the findings from the London Capital and Finance and Connaught reports on how it authorised and supervised these firms. The new Chief Executive Nikhil Rathi is using a Transformation Programme to engineer the business he wants to be running for the next five years.
This internal restructure is aimed at clearly defining the goals and outcomes the FCA seeks to deliver across the markets it oversees, and the tools it deploys in doing so. This work will focus on how they align their resources and operating model to achieve these goals; and the ways they gather, analyse and act on intelligence, including through developing greater automation, data and digital capabilities. AMI will very much be part of this activity.
For us it is about better authorisation processes, slicker supervision and less costs being passed to the compensation scheme. A greater focus on what most firms do well, allowing competitive growth without interference from the FCA. Until it can prove it is an effective supervisor, it should severely limit its work on a domestic consumer based competition agenda, but focus on ensuring UK financial services can be competitive world-wide.
Chief Executive, AMI