Companies increasingly satisfied with the FCA

Financial services firms have reported an increase in satisfaction with the Financial Conduct Authority in the past year.

The FCA’s Professional Panel survey captures the views of businesses on how the city watchdog is meeting its regulatory responsibilities.

It is conducted between chief executives and/or compliance officers of a number of different organizations regulated by the FCA.

Firms were classified into fixed and flexible firms, the former being a small population of firms that, based on factors such as size, market presence and customer footprint, require the highest level of supervisory attention.

Flexible companies are proactively monitored through a combination of market-based thematic work and communication, engagement and education programs actively aligned with the key risks identified for the sector in which the companies operate.

According to the survey, satisfaction among fixed businesses increased to an average score of 7.4 out of 10, compared to 6.9 in 2022-23.

While flexible business satisfaction levels also improved slightly, from 7.2 in 2022-23 to 7.4.

Firms were also asked how effective the FCA had been in regulating the financial services sector over the past year. Fixed businesses believed there had been an improvement with a score of 7.2, compared to 6.7 the previous year.

The regulator’s effectiveness rating for flexible businesses also rose to 7.2 from 6.9 in 2022-23.

Appointed representatives

Firms with appointed representatives were asked how firms in their sector had changed the way they monitor RAs as a result of the FCA’s actions in the past 12 months.

The majority of companies (63%) reported an increase in oversight, while only 1% of companies said that AR oversight in their industry had decreased in the previous 12 months, and 28 % said it had stayed the same.

Impact of regulation

Around 84 per cent of fixed firms agreed that FCA regulation improved the UK’s reputation as a financial center and three-quarters agreed it delivered better outcomes for clients.

Most flexible firms agreed that FCA regulation improved the UK’s reputation as a financial center (73%), delivered better outcomes for consumers (60%), aligned with rules imposed by other regulators (49%) and acted proportionally (42%).

Objectives of the FCA

Firms were asked how confident they were that the FCA’s oversight of the industry was meeting their strategic and operational objectives.

Around 94% of fixed businesses trust that the regulator is fulfilling its strategic objective of ensuring the smooth functioning of financial markets.

Similar levels of confidence were recorded for the FCA’s top two operational objectives, which included ensuring an adequate degree of protection for consumers (92%) and protecting and enhancing the integrity of the UK financial system (97%).

Firms expressed lower levels of confidence in relation to the third objective of the operation, with 68% saying they trusted the FCA to meet its aim of promoting effective competition.

Similar sentiments were shared among flexible firms with 84% confident in the FCA’s ability to ensure financial markets work well, protect consumers (84%) and protect the integrity of the financial system (83%).

In terms of promoting effective competition, 70% were confident the FCA was achieving this, up from 67% in 2022-23.

“The aim of promoting effective competition in the interests of consumers has consistently been subject to lower levels of confidence compared to the FCA’s other aims. There is also ongoing evidence that this goal is the
less well understood by companies,” explained the regulator.

According to the FCA, this was the first survey where companies were asked to provide feedback on the regulator’s secondary objective of growth and international competitiveness.

Around 47% of fixed businesses said they did not trust the FCA to meet this target and 24% said they did not know.

Flexible companies expressed more confidence in the target than fixed companies, with 58% saying they were confident.

Risk identification

When asked whether the FCA was reactive or proactive in identifying risk, the majority of firms felt that the FCA took a “balanced approach”, with 68% of firms firm and the 48% of flexible companies expressing the view that the FCA was proactive and reactive in equal measure.

However, according to the data, there was a clear feeling among a minority of firms that the FCA tended to be reactive, rather than proactive, with a quarter of fixed firms and 31% of flexible firms feeling that the FCA’s approach was primarily reactive.

Confidence and trust

According to the data, fewer fixed businesses had felt a drop in confidence, with just 9% saying their confidence had declined in the past 12 months compared to 22% in 2022-23.

A large proportion of fixed businesses (77%) said their confidence had stayed the same, while 14% said their confidence had increased.

Among flexible businesses, similar levels of confidence were recorded compared to 2022-23.

Fixed and flexible firms were generally positive about FCA supervisors and FCA staff, although there was a drop in agreement among fixed firms in relation to whether FCA supervisors knew the rules and FCA requirements, from 87% in 2022-23 to 77% in 2023-24.

Data requests

Around 39% of fixed firms felt they received “many” requests for data/information from the FCA, 39% said they received many requests but understood the reasons and a further 28 % said they got more than they thought they needed. .

Related Posts

BofA Securities stuft Futu Holdings-Aktie höher ein und erhöhet das Kursziel um 20% Von Investing.com

Kate Cassidy: Who is Kate Cassidy? Liam’s girlfriend writes a heartfelt note

Android Auto: New AAWireless TWO-Dongle im Review: More comfortable and convenient (Galerie)