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Financial regulator denies 'going soft' on banks
Financial regulator denies 'going soft' on banks
This is a duplicate of the Blog Entry made on: 9th January 2016 09:42
This is a duplicate of the Blog Entry made on: 9th January 2016 09:42
The interim chief executive of the Financial Conduct Authority has defended her record in regulating the banking sector.
Tracey McDermott took over the role after Martin Wheatley left the organisation in September. Critics say the Treasury has successfully put pressure on the regulator to be more "light touch" in its treatment of financial firms. But Ms McDermott says the FCA takes a tough stance against the industry.
'Taking action'
Speaking to the BBC she said: "We're not going soft on the banks, we're not being told what to do by the government. We have objectives which are set for us by parliament and statute, and we are determined to deliver on those." Ms McDermott gave examples of the regulator's action on Libor and Foreign Exchange Trading, and said the FCA had imposed a £72m fine on Barclays in December over poor handling of financial crime risks. "If you look at what I've been doing in the last six months since I've been in the role as chief executive you'll see that we have continued to take action against the industry," she said. However, critics have pointed to other recent decisions by the FCA which they say show it is taking a lighter touch to regulation.
Emerging patterns
Peter Hamilton is a barrister whose cases involve the financial services market and FCA regulation. He believes the FCA has softened its stance since Martin Wheatley was forced to step down: "Let's look at the evidence. "The abandonment by the FCA of its review of banks' culture and ethos. The decision not to take action against HSBC in respect to its Swiss subsidiary." Other critics have highlighted the decision not to publish a report on how firms offer inducements to some staff to encourage them to make sales. The FCA decision to consult on whether to impose a time limit beyond which customers could not longer put in a Payment Protection Insurance claim has also attracted criticism, along with a move to set up an expert panel to consider whether to allow commission-based selling of investment products again......Read more here
Tracey McDermott took over the role after Martin Wheatley left the organisation in September. Critics say the Treasury has successfully put pressure on the regulator to be more "light touch" in its treatment of financial firms. But Ms McDermott says the FCA takes a tough stance against the industry.
'Taking action'
Speaking to the BBC she said: "We're not going soft on the banks, we're not being told what to do by the government. We have objectives which are set for us by parliament and statute, and we are determined to deliver on those." Ms McDermott gave examples of the regulator's action on Libor and Foreign Exchange Trading, and said the FCA had imposed a £72m fine on Barclays in December over poor handling of financial crime risks. "If you look at what I've been doing in the last six months since I've been in the role as chief executive you'll see that we have continued to take action against the industry," she said. However, critics have pointed to other recent decisions by the FCA which they say show it is taking a lighter touch to regulation.
Emerging patterns
Peter Hamilton is a barrister whose cases involve the financial services market and FCA regulation. He believes the FCA has softened its stance since Martin Wheatley was forced to step down: "Let's look at the evidence. "The abandonment by the FCA of its review of banks' culture and ethos. The decision not to take action against HSBC in respect to its Swiss subsidiary." Other critics have highlighted the decision not to publish a report on how firms offer inducements to some staff to encourage them to make sales. The FCA decision to consult on whether to impose a time limit beyond which customers could not longer put in a Payment Protection Insurance claim has also attracted criticism, along with a move to set up an expert panel to consider whether to allow commission-based selling of investment products again......Read more here
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