Investment - Articles - IMA welcomes inquiry into FCA accountability

 Responding to today's announcement by the Treasury Select Committee of an inquiry into the accountability of the FCA (Financial Conduct Authority), Richard Saunders, Chief Executive of the IMA, said:

 "We welcome this inquiry. With a new Financial Services Bill to be introduced in Parliament shortly, this is the right time for a close examination of how the new regulator can best meet its responsibilities.

 "Many directly supervised firms, where consumer detriment has been rare, are required to provide vast amounts of data to the FSA every year. But the real problems arise elsewhere: failures of intermediaries regulated by the FSA, but not subject to direct supervision, have led to compensation costs to consumers of nearly half a billion pounds in the last three years alone.

 "This strongly suggests that the present approach is not working, and that priorities need to be rethought. The new regulator will need to demonstrate that the money it charges the industry adds value for consumers."