FCA chief: We’re pursuing root and branch overhaul

The City watchdog is undergoing a root and branch overhaul to “mitigate the shocks” on the horizon for Britain’s financial services sector, its chief said today.

Speaking at Peterson Institute for International Economics in the US, Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said the regulator is reshaping its oversight of the Square Mile “to address the threats, mitigate the shocks, and embrace opportunities”.

Rathi has put improving the standard of data banks, fund managers, insurers and the like give to FCA at the heart of his strategy to deliver a more effective regulatory regime since taking charge of the organisation in October 2020.

He slammed firms who dupe consumers into buying unsuitable products.

“Selling someone the right product, easily understandable with suitable customer service is hardly controversial but, too often, even established firms aren’t delivering,” he said.

Rathi signalled the FCA will try to stamp out volatile crypto assets to stop inexperienced investors being burnt.

He said the regulator supports the “responsible use cases for [cryptocurrencies’] underlying technology while ensuring it is not at the expense of appropriate consumer protection or market integrity”.