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.