The Financial Conduct Authority (FCA) has unveiled a five-year plan to “significantly streamline” its operations in a drive to improve efficiency.
The City watchdog said it would take “a less intensive approach” to overseeing financial services companies and “strip out redundant requirements” holding the industry back, starting with a review of its redress regime.
It also wants to simplify its authorisation processes by automating jobs currently carried out by supervisors.
They currently oversee some 100,000 cases a year but the FCA said it would fast track the process through digitalisation.
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The FCA said the new strategy was driven by a need for better efficiency, but Broadstone’s head of policy David Brooks warned that it risks cutting back too much.
“The FCA states that it is aiming to strip back unnecessary costs to drive growth and create improved consumer outcomes but there is likely to be nervousness around the extent to which consumer protections are diminished such as its review of mortgage affordability requirements,” he added.
Nevertheless, FCA chair Ashley Alder said the revised plan would make the industry re-access its attitude towards risk.
“Now is the time to look again at our collective attitude to risk. Too often the focus has been on the risks of a decision taken rather than the lost opportunity of taking none. We want to change that,” he said.
This story was written by our sister title, Portfolio Adviser
