Independent Report Criticizes FCA on Post-Crisis Softness

According to the findings from a recent study conducted by a commissioner overseeing financial authorities in the UK, Antony Townsend, has iterated that the FCA has been way too soft in the aftermath of the financial crisis and has not been vigilant enough in encouraging real reforms.

The study cites the FCA as being “defensive in the face of criticism” and condemns some of the practices of the watchdog as inappropriate.

The FCA is being accused of not dealing properly with a number of companies by Anthony Townsend, who authored the report. The main reasons for the deteriorating performance of the services which the UK financial regulator is supposed to supervise are related to increased workload and staff shortages.

Rising Complaints in the Midst of Leadership Challenges

With increased public pressure on the vigilance which the financial sector requires in order to be 'reined in', the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term is not likely to change the financial regulatory framework in the UK to a more moderate one.

“While the FCA continues to deal with the majority of complaints competently and fairly, I have seen examples of an unwillingness to face up to and admit shortcomings, and delays in dealing with ‘awkward’ cases,” the author of the report states.

Part of the challenges which the FCA faces lie with the lack of long term governance. The UK financial sector overseer has had three different chief executives throughout the past 12 months.

The FCA received 590 complaints last year. The figure compared to only 464 during the previous twelve months. Commissioner Anthony Townsend has received 131 complaints which were the basis for his report.

The UK regulator is in for a tough challenge in the coming years as the number of staff is unlikely to change due to the prospective repercussions of the Brexit. At the same time, the implementation of MiFID II MiFID II MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina Read this Term next year is likely to additionally increase the workload for existing personnel of the FCA.

With these challenges in mind, the UK financial watchdog could also have to devise contingency plans on how to orchestrate the exit of a number of financial firms from European Union passporting in an orderly fashion.