Financial Firms Push for More Transparency over Brexit According to FCA Survey

The UK's financial services sector wants the Financial Conduct Authority (FCA) to improve communications with the firms that it oversees, and needs clearer and more predictable Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, as well as more transparency over 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 issue.

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These are the three key highlights from the FCA Practitioner Panel’s survey of FCA-regulated firms, which was conducted in February/March this year. The survey allows the institutions that the FCA regulates to evaluate its performance as a regulator, which in turn provides important feedback on the expectations of firms for the nation’s watchdog.

The responses of more than 2,000 firms found that 70% of regulated firms are satisfied with the authority’s effectiveness regarding securing an appropriate degree of consumer protection. This is compared with just 67% of all respondents of last year’s survey.

Still, nearly 30% lack confidence in the FCA’s ability to deliver clear information on the process of preparing to exit the European Union. Respondents also wanted the FCA to ensure that the UK market remains attractive and competitive during the process.

Focus for improvement

The survey identified several key areas for further improvement. It noted that the FCA must put more effort into communicating with firms, offering them clear guidance and building up their understanding of the regulator’s future plans, in particular regarding the challenges of Brexit.

Responding to the survey findings, Andrew Bailey, Chief Executive of the FCA, commented: “We are pleased that firms continue to rate our performance as a regulator highly. But we know that we can always do better and the survey is very helpful in identifying a number of areas for improvement. In our Mission we committed to be more transparent, communicating clearly with firms so that they understand our role, remit and expectations. The survey also reflects concerns amongst firms about the uncertainty ahead for the financial services sector and we remain committed to delivering effective regulation which will enhance the UK financial system in the future.”

António Simões, Chair of the FCA Practitioner Panel, added: “We are encouraged by the findings of this year’s survey that there has been progress against all three of the FCA’s operational objectives. Last year we identified that there were concerns around the competition objective, and that the life and pensions industry was more generally dissatisfied with the work of the FCA than other sectors. To see progress against both these points is a sign that the regulator is heading in the right direction. The Panel will continue to work with the FCA to address the issues raised in the survey about communication, volume of regulation and the challenges of Brexit.”