FCA is a genuinely reformed regulator: Wheatley

The chief executive of the FCA is set to tell City representatives at the Mansion House dinner tonight (Wednesday 23) that the twin peaks regulatory system has created a new, fairer, firmer regulator that has better and more effective powers than the old FSA.

Mr Wheatley is expected to tell attendees: “I do think the financial world is getting its act together. People want to know whether progress is uniform, whether we can we prevent all financial shocks and are the efforts of banks and financial services genuine?

“They will also want to know whether we will get a fairer deal in the future, whether there will be more set-backs and whether the regulatory system is genuinely reformed.

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“To which, my answers would be: not yet, no, probably, I think so, yes, and absolutely.”

The head of the City watchdog is also set to warn the city that there is “no room for complacency”, stating that the FCA will make sure that poor conduct is filtered out of the industry and to prevent future crises from happening.

Mr Wheatley will also tell delegates that the regulator is working hard to reduce its own perceived failings to handle regulation properly.

He will say: “Much of the criticism of the regulator in the past – which we are now working to untangle – has been around the frustrations of retrospective action versus early warning, talking over listening to, and inconsistency over predictability.

“And this is why we now see more issues like interest only mortgages tackled by the regulator early, rather than dealt with retrospectively.

“It also means being open and transparent on the back book of cases we are still handling. Once again, we come back to that word ‘fairness’. In too many cases, the first injustice is compounded by a second of failing to deal with the problem adequately.”