Financial Conduct Authority
Andrew Bailey on 'Our Mission' video transcript Andrew Bailey: The reason for the Mission was to be able to explain the important public interest responsibilities of the FCA. It's about saying 'as a young organisation, we've more to do to develop our thinking and our understanding of our role'. How we explain it to people. How we react when we come across the issues that affect us and how we make the decisions about which things we prioritise. How do we decide to do this thing and wait or not do that thing or say 'I'm afraid that thing's going to have to come later'. This is all the more important in the current context if you take issues like Brexit, which are putting a huge additional responsibility upon us to do what the Government needs to have done. We've got to make more choices of that sort. So, it's even more important that we understand our Mission and our story. What did you tell us? I think the biggest thing we learned from the consultation was to be bold. People came from different perspectives, and that we understood. Over 150 people and organisations responded, for which I am very grateful. If you put all of them together, and the many different points that were made it was 'go further', go further in terms of explaining yourselves in terms of explaining how you think about harm, how you think about remedies. Tell us how your thought processes work. People want to understand this I can appreciate why they want to do that. The bottom line from it was 'be bold'. What does this mean for consumers? In doing the Mission we wanted to face up to this question: Do we give a broadly average level of protection to everybody all of the time or do we think more about vulnerability do more about vulnerability? We have said quite clearly in the Mission that we do put a lot of emphasis on vulnerability. We think that's right but it then transfers the question into another hard one - which we're going to be doing more work on this year and come out another piece of explanation as to what we do, which is 'how do we think about vulnerability?' because it isn't a simple concept at all. We want to be more transparent in terms of protection we give to consumers and we want to be more proactive. What does this mean for firms? The FCA regulates 56,000 firms. That's a lot. More than twice the number our predecessor, the FSA, did. So, we have to balance many different firms across many different sectors. And how we maintain contact with those firms - many of whom are small, don't have a lot to invest in regulation - and how they maintain contact with us. As important as it is for us to understand them, it's important for them to understand us. We're working on and have been putting into practice ideas for doing more in that respect. We're doing a lot more regional engagement, regional visits to meet firms and groups of firms to maintain more contact. We've got more ideas and we want to develop those ideas through the work we're doing to review the effectiveness and operation of our supervision, for instance.
About the FCA
First published: 21/04/2016 Last updated: 09/04/2018
The Financial Conduct Authority is the conduct regulator for 58,000 financial services firms and financial markets in the UK and the prudential regulator for over 18,000 of those firms.
What we do
Financial markets need to be honest, fair and effective so that consumers get a fair deal.
We aim to make markets work well – for individuals, for business, large and small, and for the economy as a whole.
We do this by regulating the conduct of more than 58,000 businesses. We are also the prudential regulator for more than 18,000 of these businesses.
The Prudential Regulation Authority (link is external) (PRA) is the prudential regulator of around 1,500 banks, building societies, credit unions, insurers and major investment firms. As a prudential regulator, it has a general objective to promote the safety and soundness of the firms it regulates.
We were established on 1 April 2013, taking over responsibility for conduct and relevant prudential regulation from the Financial Services Authority.
Why we do it
We are responsible for regulating a sector which plays a critical role in the lives of everyone in the UK and without which the modern economy could not function. From children’s ISAs to pensions, direct debits to credit cards, loans to investments – how well financial markets work has a fundamental impact on us all.
UK financial services employ over 2.2 million people and contribute £65.6bn in tax to the UK economy. If UK markets work well, competitively and fairly they benefit customers, staff and shareholders, and maintain confidence in the UK as a major global financial hub. Our role is to help ensure this happens.
How we do it
Our strategic objective is to ensure that the relevant markets function well and our operational objectives are to:
- protect consumers – we secure an appropriate degree of protection for consumers
- protect financial markets – we protect and enhance the integrity of the UK financial system
- promote competition – we promote effective competition in the interests of consumers
We are an independent public body funded entirely by the firms we regulate, by charging them fees. We are accountable to the Treasury, which is responsible for the UK’s financial system, and to Parliament.
Our work and purpose is defined by the Financial Services and Markets Act 2000 (FSMA) (link is external). We work with consumer groups, trade associations and professional bodies, domestic regulators, EU legislators and a wide range of other stakeholders. With this extensive remit, we use a proportionate approach to regulation, prioritising the areas and firms that pose a higher risk to our objectives.
MR JIM SHANNON MP LETTER TO MR ANDREW BAILEY (FCA CEO) on 19 SEPTEMBER 2017 and HIS REPLY DATED 20 NOVEMBER 2017 and TSC SME Finance Report dated 26 October 2018 Section 3 extracts re pre FSMA2000 law and Mr Andrew Bailey letter dated 30 January 2018 on the Regulatory Perimeter
Message from Andrew Bailey FCA CEO for the CYBG Remediation Support Group inaugural meeting:
“The FCA is firmly in support of satisfactory resolution of past cases involving banks and small firms, including tailored business loans. We agree that the framework proposed by the Walker Review should be developed to provide effective arbitration and resolution which is independent and fair. It is important that the design and oversight of these arrangements reflect the views of all parties.”
Message from Jim Shannon, MP for Strangford, (DUP), for inaugural group meeting can be found in the members area.