Speaking at the Chartered Institute for Securities & Investment's 30th anniversary dinner, FCA chief executive Nikhil Rathi said he remains optimistic about the regulator’s future because “I will never stop listening”.
He said: “Change is hard but we are listening to staff and we are also listening to the consumers, industries and governing bodies who need us to change, and change fast, so we can perform better and meet the challenges of the future."
Within the speech, Rathi said: “Our people are our greatest resource and we believe we offer what is possibly the best package among UK regulators, with competitive pay and strong rewards for consistent performance and greater opportunity for career mobility."
Do more skills and education result in consumers taking some responsibility for their own actions?Dereky Bradley, Panacea Adviser founderAlthough he did not address the strike action directly in his speech, the chief executive said: “We have paid particular attention to the pressures faced by our lowest paid colleagues.”
Earlier this week (May 4) the FCA’s Unite members took part in the first day of strike action and held placards and flags complaining about changes to pay and conditions of employment.
The strike followed after members of Unite, the union which represents staff at the regulator, agreed last month to take part in a work-to-rule, meaning they would work strictly to their contracts of employment, job descriptions and working hours.
Last month, the FCA said it would recruit 80 new people to crack down on problem firms and police the market.
At the time, Rathi said the FCA has increased efforts to stop firms with inadequate harm prevention controls from entering markets, having so far, recruited 95 people to improve the process for authorising firms.
In the speech yesterday, Rathi said in a “highly competitive recruitment environment”, the FCA has attracted hundreds of new colleagues and anticipates dozens more joining in the months ahead.
“We strongly believe in development and training, the mission of the CISI, so our colleagues can fulfil their potential and go on to achieve even greater things,” he added.
“Just 18 months after starting at the FCA, I have witnessed levels of change and transformation that I was told would be too challenging, even impossible, when I first took the role.
“Much of that transformation has been brought about by learning from our past in order to look to our future.”
Digital skills
During the speech, Rathi admitted there was much further to go in terms of his vision of being a data-led regulator.
He explained that the FCA has been transforming to grow its expertise in the digital field.
“These digital skills are vital for both CISI members and FCA staff as the lines between tech firms and financial services have become ever more blurred,” he said.
“As regulators, the remit we face is poised to broaden as tech companies become more involved in distributing and promoting financial products.
“Every course CISI offers in future – and every module of training our own staff at the FCA undertake – will have an element of digital upskilling.
“We too are boosting our capabilities in this field with a recruitment drive for data analysts and scientists.”
Commenting on Rathi’s statement to develop skills, Panacea Advisers’ founder and chief executive Derek Bradley said: “[This is] very laudable but do more skills and education result in consumers taking some responsibility for their own actions?”
The lines between tech firms and financial services have become ever more blurredNikhil Rathi, chief executive of the FCAMeanwhile, Chartered Insurance Institute’s chief customer officer Gill White, said personal finance professionals recognise they need a combination of technical knowledge, skills and behaviour to secure the trust of their clients.
“You need to have a comprehensive understanding of our sector: its fundamental principles, its market and products, and the laws and regulations that govern it.
"However, they also need specialist knowledge to provide expertise, especially when technology is reducing the administrative burden, speeding up processing, and freeing up time to focus on more holistic advice and support."
White added that this expertise needed to be kept up-to-date to address new challenges such as systemic risk, environmental, social and governance issues, unmet needs and the demand from both the public and regulators for greater transparency.
She added that acquiring knowledge, skills and behaviour that puts the client at the centre was essential if financial planning professionals were to thrive in the years ahead.
sonia.rach@ft.com
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