FCA rated as an effective regulator

FCA rated as an effective regulator

The Financial Conduct Authority is an effective regulator, according to a survey of firms which it has published.

The regulator has published the annual survey, which it conducts jointly with the Practitioner Panel of regulated firms.

This showed firms gave the FCA an increased score of effectiveness of 7.1 out of 10, compared with seven last year.

Article continues after advert

Perceptions of the effectiveness of the FCA were lower in the retail investments sector, which gave a score of 6.7, and highest among the retail lending sector, which gave a score of 7.6.

When asked how satisfied firms were with the FCA, they gave a score of 7.6 out of 10, which was also an increase on last year, when they gave a score of 7.5.

The survey identified three areas where the FCA could improve: transparent regulation, forward-looking regulation and facilitating innovation within UK financial services.

Andrew Bailey, chief executive of the FCA, said: "Testing the effectiveness of the FCA's work helps it to make better decisions and increase public value, and by listening to feedback it can learn for the future.

"We were pleased that this year the response rate to the survey has increased from 21 per cent to 26 per cent. The more feedback we get, the more we can work together to make financial services work better for everyone.

"We were also pleased to see that the scores which we track for overall satisfaction and effectiveness have continued to increase, as they have done throughout the life of the FCA."

The survey found there was a high level of support across the industry for strong regulation, with 83 per cent of firms agreeing that strong regulation benefited the industry as a whole.

A majority of firms - 79 per cent - also agreed the work of the FCA enhanced the reputation of the UK as a financial centre.

Overall firms were broadly satisfied with communication from the FCA, with an average satisfaction score of 7.4 out of 10, which was an improvement from 2017, when the average score was seven.

A total of 2,613 firms completed the survey.