Context
The FCA has published a speech by Nikhil Rathi, FCA Chief Executive, titled “Collaborate to compete: why we must all embrace a growth mindset”
Key points to note
Key points made in the speech:
- To boost the UK’s competitiveness; industry, government and regulators need to work together on a long-term vision, not short-term tactics which is why the FCA has been a standard-bearer for innovation and regulation around the world.
- Industry wants an effective and efficient regulator which is why the FCA has focused on bringing down its authorisation times and is investing in its digital capabilities and infrastructure.
- The FCA’s proposals for listings and asset management reforms are designed to enhance competitiveness, reduce complexity and unleash capital for growth.
- We must take a balanced view of risk: let us not be so afraid of failure that we stifle innovation.
Nikhil Rathi, during the speech, highlights the FCA’s investment in case teams over the past 3 years with 97% of cases being assessed within statutory deadlines. Also noted is the FCA’s increased scrutiny on new direct authorisation applications, with 1 in 4 firms not making it through, up from 1 in 14 two years ago. This approach, it is said, means the FCA can better focus its supervision resources and see fewer, faster enforcement investigations.
Rathi also notes that the introduction of the Consumer Duty is starting to see better value products, communications and customer journeys, better deposit competition and faster pass through of rate rises.
Next actions
None – for information and awareness.