A majority of firms have identified that they want "clearer and more predictable" regulations, according to results of the most recent survey by the Financial Conduct Authority (FCA) Practitioner Panel, conducted in March 2013.
Being only a month old, such surveys provide important feedback on the "expectations of firms for the new regulator", according to Graham Beale, chairman of the FCA Practitioner Panel.
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As per results of the survey, frustration is mounting amongst smaller firms about the impact of regulation, particularly amongst those affected by the Retail Distribution Review (RDR). The FCA Practitioner Panel survey further reveals that firms that are relationship managed have a far better understanding of the FCA, and 44% of non-relationship managed retail firms said the regulator at the time (FSA) was not at all effective.
According to the survey results, the FCA must put more effort into communicating with smaller firms and offer them means of engagement alongside building up their understanding of the regulator.
There are specific areas where the FCA needs to focus on, reveals the surevy. The FCA will have to work at keeping themselves updated regarding how firms are changing as per recent regulatory changes. According to the survey results, more than 80% of all firms have made changes to their risk assessment processes.
More than 70% of relationship managed firms are confident that FCA will deliver on securing an appropriate degree of consumer protection.
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By GlobalDataThe Practitioner Panel will work with the FCA going forward and Martin Wheatley, CEO of the FCA said this survey is a "valuable snapshot" of how firms view regulation.
"From this last survey undertaken at the FSA, it is clear that firms believed there are some areas which could be improved. As the FCA, we have changed our approach and the way we regulate, and we are becoming a more forward-looking, predictable and engaged regulator which acts from a position of greater understanding of the industry.
"We are also developing our approach to our competition objective. Our work with the Practitioner Panel will help us to develop these changes to ensure a well regulated financial services sector which gives consumers a fair deal."
