FCA discusses post-Brexit regulation for UK markets

The Financial Conduct Authority set out its post-Brexit vision and said it was now in a position to set rules that improve UK financial markets.

FCA’s Executive Director of Markets, Sarah Pritchard, made the statement at CityUK’s annual conference.

“Following Brexit, we are now also able to adapt our rules to meet the specific needs of our markets. As part of the new future regulatory framework, the government is proposing new secondary competitiveness targets for the FCA and the Prudential Regulatory Authority (PRA),” she said.

“These proposals strike an appropriate balance between promoting growth without coming into conflict with our three main objectives – consumer protection, market integrity and competition in the interests of consumers.”

She explained that the regulator has taken steps to reduce severe harm by prioritizing a rapid transition away from LIBOR.

The London Interbank Offer Rate, or LIBOR, is a rate based on banks’ quotes on the cost of borrowing short-term funds from each other.

In 2008, regulators discovered that traders had manipulated LIBOR, and several prominent banks were fined for their role in the fraud.

“We have worked closely with market players, the Bank of England, the PRA, the Treasury and our international counterparts to deliver this important market reform over the past five years,” she said. added.

Pritchard also said the FCA had worked closely with the government on the Online Safety Bill to hold tech companies accountable “for what is posted on their platforms”.

“Besides that there are much smaller and unknown start-ups, some with legitimate goals, others just trying to scam consumers. We try to get ahead of these by analyzing 100,000 websites every day and identifying newly registered domains that trigger our ‘red flag’ fraud or scams,” she said.

Regarding the FCA’s consumer duty which will come into force in July, Pritchard said the new rule will protect consumers as it sets higher standards for businesses.

She stressed that the rule will expect companies to “not just prevent harm”, but to show that they are actively trying to meet the needs of their customers.

This relates to product design, the way products are described and sold, and after-sales customer service.

“It’s a goal that makes business sense and is the right thing for consumers to do. Selling someone the right product with the right customer service shouldn’t be controversial in this century,” she said.

Comments are closed.