On 21 October Christopher Woolard, Executive Director of Strategy and Competition at the Financial Conduct Authority (FCA), delivered a speech at the City of London / Cicero event on the future of regulation. In his speech, Mr Woolard discusses whether the current regulatory model is still the right one.
Mr Woolard states that the FCA is moving from a narrower compliance with the rules, to a focus on delivering wanted outcomes for the users of financial services and in practice this means taking the following steps:
- Stating what outcomes the FCA wants to see in markets
- Using everything available in the regulatory toolkit Parliament has given the FCA
- Working with other agencies
- Reviewing the existing rules to make the Principles clearer about the FCA’s expectations
- Considering technology and the opportunity it presents to bridge the information asymmetry between customers and providers
Mr Wollard concluded his speech noting that in order for the FCA to deliver on its objectives:
… we need regulation that is agile and doesn’t become outdated as domestic and global markets evolve, resulting in inefficiencies and consumers being unduly exposed to risk and harm. This requires a bold approach and the full use of tools given to us by Parliament. It also means a focus on simplicity, clarity and real-world effectiveness.
By putting outcomes at the heart of the debate in the coming months we want to ensure financial services markets serve the public interest, now and in the long term.
Should you require any assistance in better understanding regulatory requirements and expectations, please do not hesitate to contact us.