Financial Conduct Authority  

FCA boss 'amused' at calls to resign over Mifid II

FCA boss 'amused' at calls to resign over Mifid II

The chief executive of the Financial Conduct Authority said he was amused by calls for his resignation over the implementation of the Mifid II. 

Speaking at Bloomberg in London today (September 16) Andrew Bailey delivered an update on the FCA and industry's preperations for Brexit, concluding the regulator would take a "pragmatic" approach to issues as they arise.

Mr Bailey said: "We will use forbearance generously but appropriately, to maintain market integrity and protect consumers and market uses."

This, he said, would be similar to the watchdog's approach to the implementation of Mifid II - EU legislation which took effect in January 2018 requiring, among other rules, that firms should disclose a breakdown of all costs and charges associated with a client’s investments.

The rules require costs to be provided on both a forecast and actual basis and are intended to increase transparency of costs charged to clients and to strengthen investor protection.

Mr Bailey said: "It amuses me that [the FCA's use for forbearance] led some commentators to call for my resignation for not implementing the letter of the regulation immediately come what may.

"So be it, I’m still here. Our priority is to do the right thing according to our public interest objectives." 

The FCA boss said the regulator would be working with firms to ensure contingency plans are "executed effectively" to achieve this. 

Mr Bailey said the economy and the financial services industry had advanced in their preparations for a no-deal Brexit this year, praising firms which had "stepped up" their plans and UK authorities which had made "good progress" in anticipation of the UK departing from the EU. 

He added: "Much progress has been made on preparations in financial services, and this is recognised in the adjustments the Bank of England has made to its scenarios, including its worst case one.

"Inevitably, we cannot relax, progress is welcome but there are issues still to be resolved and uncertainly to be dealt with." 

Mr Bailey finished: "So, in short, and to end, we have made considerable progress, but we do not underestimate the task ahead." 

rachel.mortimer@ft.com 

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