UKSA has now filed its response to the third and latest of a series of major consultations putting the future of financial services under the spotlight. A recurring theme is that regulation needs to put people first – to encourage wealth creation for the benefit of all and not wealth extraction for the benefit of a few.
This most recent consultation from the House of Commons Treasury Committee (HCTC) posed 17 questions on the Future of Financial Services. HM Treasury had previously posed 9 questions in ‘Financial Services: Future Regulatory Framework Review’ and the Financial Conduct Authority posed 39 questions in its ‘Call for Input: The Consumer Investments Market’.
UKSA’s policy team has addressed these 65 questions over 90 pages of detailed analysis and evidence, combining for many matters with its colleagues at Sharesoc. Among the key issues covered are:
- avoiding regulatory capture,
- strengthening the process and influence of parliamentary committees,
- replacing excessively detailed regulations that encourage ‘gaming’ with basic principles backed by the rule of law,
- a different approach to whistleblowers,
- wider use of non-statutory advice
- distinguishing innovation for improvement from ‘innovation’ to further confuse consumers,
- above all, putting people first.
The protection of consumers by regulation is covered in the original Financial Services and Markets Act 2003 (and unchanged in the revision of 2012). This only acknowledges the existence of individuals in the following objective (the third of five): ‘securing the appropriate degree of protection for consumers’.
The meaningless word ‘appropriate’ has allowed the interests of consumers to be subordinate for 18 years. Luckily, it now enables necessary changes in practice to be made without changes in law.
View UKSA's responses to the HMT and FCA consultations here(HMT) and here(FCA)
