The new chief executive of the Financial Conduct Authority has said tackling retirement savings is his top priority.
Andrew Bailey appeared before the Treasury Select Committee this afternoon (20 July) for a hearing to mark his appointment in charge of the City watchdog.
During the hearing he was asked what his top priority was for the FCA over the coming months and years.
Mr Bailey said: “The biggest single issue we face in the financial services landscape, particularly the retail financial services landscape. I think is the long-term savings, retirement and pensions issue by a long way.
“There are a number of things we can do. Obviously we have got to work with other areas of public policy but frankly you have got to try and get people with as clear and transparent products as we can.
“We have got a pretty complicated landscape these days which is somewhat legacy. If you asked the question do you think the future of long-term savings and retirement provision in terms of financial services is crystal clear in this country you would have to be a brave person to say yes.”
Mr Bailey was appointed to succeed Martin Wheatley, who stood down as FCA chief executive last year after former chancellor George Osborne told him his contract would not be renewed when it expired.
Before joining the FCA he was chief executive of the Prudential Regulation Authority and in the time he has been at the regulator he has already announced a review of its mission.
During the hearing Mr Bailey was asked why he had said the FCA had “more important challenges” than the PRA.
In response he said: “There is a job to do at the FCA because of some of the well-known incidents.”
“The place needs to be run effectively and tightly. Let’s be honest, you [the TSC] have had hearings on these things.
“There have been quite big incidents within the organisation in recent years which have damaged the reputation, standing and internal morale within the institution. We have got to run an organisation which doesn’t get into those situations.”
Another issue Mr Bailey addressed was peer-to-peer lending, and he admitted he was concerned about some aspects of it.
He said: “I am pretty worried about some of the things that are said to people about these funds when they are sold to people because you get very near to promising capital certainty.”
