RegulationAug 3 2017

FCA enjoys jump in industry satisfaction rating

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FCA enjoys jump in industry satisfaction rating
ByDamian Fantato

A survey of firms in the financial services sector has found they think the Financial Conduct Authority is doing a good job.

Firms’ overall rating for the FCA’s effectiveness, which was 6.7 out of 10 last year, has risen to 7.0.

Meanwhile satisfaction with the regulator has also increased, from a low of 5.4 out of 10 in 2010 to 7.5 this year.

The survey was carried out by the FCA and the FCA Practitioner Panel and is based on responses from 2,080 firms.

But the survey did find that firms wanted the FCA to improve on elements of its communication and transparency, particularly around its plans for Brexit and its future plans amid a large volume of regulatory change.

Andrew Bailey, chief executive of the FCA, said: “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.”

Only 5 per cent of firms gave the FCA an effectiveness rating of between one and three, with the most common reason for this being that the regulator should do more to prevent wrong doing.

Meanwhile 68 per cent of firms rated the FCA’s effectiveness at between seven and 10.

Last year there were lower levels of satisfaction for the long-term savings and pensions sector in almost every area.

The Practitioner Panel encouraged the FCA to focus on this area in particular, and this has resulted in significantly more positive results, with satisfaction and effectiveness scores both up.

António Simões, chairman of the FCA Practitioner Panel and chief executive of HSBC Bank, said: “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.”