FCA signage seen at their head offices in London
(Picture: REUTERS)The City watchdog has launched a new turnaround plan to repair its bruised reputation.
The Financial Conduct Authority today announced a three year strategy to “improve outcomes for consumers and in markets throughout the UK.”
The regulator will for the first time publish performance metrics to hold itself accountable and will hire 80 new staff to tackle fraud and scams.
It follows a string of recent scandals under the regulator’s watch, including the high-profile collapses of London Capital & Finance (LCF) and Neil Woodford’s investment management business. An independent investigation into the FCA’s role in the LCF scandal was highly critical.
Critics say the regulator has also failed to get to grips with a boom in online fraud and scams over the last few years.
Staff at the FCA are also unhappy, with recent threats to strike over pay and conditions.
Campaigner Gina Miller of the True and Fair Campaign said in a letter to MPs earlier this year there was a “ mountain of evidence indicating that the FCA is not fit for purpose”.
FCA CEO Nikhil Rathi said: “Our new strategy enables the FCA to respond more quickly to the rapidly changing financial services sector.
“It will give us a foundation to continuously improve for the benefit of our stakeholders, and respond swiftly to economic and geopolitical developments.”
The watchdog, which is funded by the firms it regulates, defended its value for money, saying its calculations suggested £1 of spending on the FCA delivers £11 of benefit for consumers and small businesses.
