A recent move by the FCA is welcomed by the industry, as they plan to reduce the time and cost burden on financial services companies. Nikhil Rathi, Chief Executive of the FCA, announced on 29th July that the FCA is committed to streamlining the financial regulatory system in the United Kingdom, which includes simplifying the rules and regulations in commercial insurance and financial services.
The FCA stated its intention to tackle areas of complexity, duplication, confusion, or excessive prescription within its regulations, which often result in unnecessary costs without benefiting consumers. The FCA also aims to build flexibility into its rules to adapt to future changes and innovations.
This FCA move is widely appreciated by industry leaders:
Steven Cameron, Pensions Director at Aegon, welcomed the FCA’s initiative to reassess its rulebook, prioritising the necessity to remove outdated and overly prescriptive regulations. He stressed the importance of revisiting the advice guidance boundary to bridge the existing support gap and make quality advice accessible and affordable.
Tony Carter, Managing Director at HT Legal, welcomed the FCA’s initiative and advice to introduce more regulatory reform to ensure that customers have access to quality advisers. “When there is such a huge advice gap, it leaves many pension and investment customers without access to quality advice. This has led to scammers preying on those vulnerable clients, resulting in significant losses. This is another positive step by the FCA to help make sure those vulnerable customers are protected,” Jon said.
Victoria Sena, COO at Six Degrees and a former regulator, identified clear advantages in the FCA’s latest move. She advocated for leveraging technology to create customised handbooks tailored to firms’ permissions and streamlining regulatory reporting to lessen administrative burdens and enhance data analysis for irregularities.
What Are the Thoughts of Advisers on This Move?
Not all advisers share the optimism. One anonymous adviser criticised the consultation process, arguing that it restricts genuine feedback and discourages honest opinions due to fears of repercussions. They asserted that a truly open consultation would foster more constructive feedback and aid the development of the financial services sector.
Another adviser commented, “I’ll believe it when I see it.” He added, “Given the FCA’s pace, I doubt many of us will be around by the time anything changes.”
