FCA chief vows to support growth agenda ‘with urgency’
The chief executive of the Financial Conduct Authority (FCA) has said the watchdog is “going so much further” on its mission to boost growth in the UK, amid pressure from the government for regulators to cut red tape.
Writing in City AM this morning, Nikhil Rathi said the FCA had presented the Prime Minister with almost 50 measures designed to support long term growth and he vowed to “deliver at a pace that matches the urgency of the UK’s economic challenges.”
Supporting economic growth is now set to be one of the four priorities identified in the FCA’s newly launched five-year strategy, alongside helping consumers, fighting crime, and becoming a smarter regulator.
Rathi also said the FCA would shortly be announcing ways it will simplify its rules to remove burdens on firms “while maintaining high standards”.
“Becoming a more efficient and effective regulator helps us fight crime. That builds people’s trust, giving them the confidence to take informed risks so they can better withstand a financial shock or save for retirement,” he said.
Yesterday, FCA chair Ashley Alder said the watchdog would push for retail investors to increase their level of risk through a greater emphasis on tackling fraud.
Through making “a heavy emphasis on financial crime and fraud across the sector,” the watchdog can increase confidence in investing and therefore allow consumers to up their risk, Alder explained.
The comments come as Chancellor Rachel Reeves and Keir Starmer continue to press regulators to prioritise growth amid concerns that red tape is hamstringing the economy.
Reeves has had numerous talks with watchdogs over how to slim down regulation and cut red tape to promote growth in the UK economy, including the FCA.
The FCA was assigned a secondary growth and competitiveness mandate in 2023, while maintaining its primary objective of protecting consumers.
FCA chief writes ahead of Spring Statement
In his City AM article, Rathi addressed a variety of regulations that the watchdog has rolled out in recent years.
“Our ground-breaking consumer duty, which sets a higher standard of consumer protection, already means that firms have to act to deliver good outcomes for their customers,” he said.
However, the process of implementing consumer duty has proven to be complex and time-consuming for many businesses, with debate still raging as to the effectiveness of the new rules.
A year on from the introduction of the new regulation, 84 per cent of Brits reported no improvement in how financial providers treated them, data from Smart Money People found.
The watchdog chief also made a nod to the FCA’s ongoing advice guidance boundary review, which is expected to loosen the definition of financial advice and make it easier for consumers to access targeted support.
“We will enable more people to benefit from financial guidance, so they can make the most of their pensions and invest with greater confidence,” Rathi said.
Writing ahead of the chancellor’s Spring Statement tomorrow, the FCA boss said “growth
matters,” adding that “without it, there is less money for public services and less in people’s
pockets” and that “living standards won’t rise.”