As the Financial Conduct Authority (FCA) receives criticism for failing to protect consumers in this case, this adds weight to the FCA's argument for their proposed new Consumer Duty based on outcomes.
It does, however, raise the question over whether the proposed Consumer Duty is a real reflection on the failings of regulated firms, a failure of the current regulatory regime, a politically driven reaction or perhaps a mixture of all three.
Whatever the reason, it seems the move to stronger regulation is gathering momentum, however, wasn't this the reason for the FCA replacing the Office of Fair Trading in the first place?! Does this suggest the FCA has failed in a similar manner, perhaps so far at least.
It seems to me that nothing is going to stand in the way of the FCA's proposed reforms and although there are consultations to come, firms should prepare for a sea change in the way many aspects of financial services are regulated and judged.
Unstoppable change is coming, and I'm not sure it is going to be smooth sailing for many!
Originally published by Shoosmiths, June 24, 2021
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