FSCP has reviewed the role of FSA as conduct regulator in relation to Payment Protection Insurance (PPI), packaged bank accounts and firms’ use of selling incentives. It has also considered in what ways the Financial Conduct Authority (FCA) should act differently from FSA . For the FCA to succeed in the more proactive approach to regulation it is set to take, FSCP recommends that FCA should:
- act quickly to prevent widespread consumer detriment, intervening in the product design and sale process and adopting a judgement-led approach that could involve taking action without incontrovertible evidence of market failure;
- make effective use of consumer and market intelligence;
- utilise the full suite of its powers, including those related to the new competition objective;
- ensure risks are prioritised and resources are used effectively, looking to identify and tackle risks that may materialise in the medium to longer term;
- deliver a credible deterrence, with continued focus on holding individuals in Significant Influence Functions to account; and
- build a culture within the FCA to deliver its regulatory vision, with the necessary leadership so that staff feel empowered to take judgement-based action.