IMA has responded to the call for evidence on the draft Financial Services Bill. Its main comments are:

  • It is important that regulators should be held to account over how they exercise their supervisory responsibilities.
  • There is a need for clarification on the scope of the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA).
  • There should be controls over when PRA can veto FCA decisions.
  • The FCA’s objectives must include competitiveness.
  • The compensation scheme needs a radical redesign.
  • There should be an independent complaints commissioner to deal with complaints about the regulators.
  • The Bill has missed an opportunity to update the Regulated Activities Order and “permission” regime, and to bring them more into line with EU legislation.

It makes many of these comments also in its response to FSA’s “Approach” document to FCA regulation. (Source: IMA Comments on Financial Services and IMA comments on FCA Approach)