Regulator admits failings of firm contact centre
The FCA has admitted its firm contact centre failed to meet some service standards, which it attributed to an increase in complex queries from adviser firms.
In the minutes of its 25/26 February board meeting, the FCA said that with regard to authorisations, “the firm centre had failed to meet some service standards due to sustained increase in calls of a higher than average complexity”.
Discussing its quarterly performance report for the third quarter of 2014 at the meeting, the regulator said it had provided additional staff with training to support the team and help remedy the issue.
“We have provided training to staff to help them deal with a sustained increase in complex calls,” an FCA spokesman said.
The regulator also revealed its supervision division had shown elements of resources being stretched, and is being reviewed by Tracey McDermott, director of supervision – investment, wholesale and specialists.
According to the minutes, Ms McDermott said she was reviewing the supervision model, including whether it would be possible to build in more flexibility, particularly around the regulator firm evaluation cycles.
The board minutes stated there would be more operations staff in April.
The FCA is expected to separate its authorisations and supervision divisions next month, following Clive Adamson’s exit as supervision director, to allow for a clearer distinction between its approach to regulating larger and smaller firms.
Ms McDermott will manage the transition and then lead one of the two divisions later this month. It is not yet known what role current acting executive director of enforcement and market oversight Georgina Philippou will have.
The FCA is still awaiting a commencement date from the Treasury for the accountability regime in order to plan for its implementation with firms. This might not happen until after the general election.
The board noted also that the FCA was reviewing publicly available indicators that could be used as potential indicators of increased risk of consumer detriment.
Background
A seven-page report, Our Approach, published in December 2014, detailed how the FCA intended to meet the regulatory challenges ahead, following a detailed review it had done on its strategy, priorities and ways of working.
The report laid out a strategy to provide a “sharper focus” on how firms were regulated, and on delivering the right outcome for both consumers and the markets to ensure resources were efficiently and effectively deployed.
