The Financial Conduct Authority has drawn praise from the Personal Finance Society chief executive for abandoning the “adversarial approach” of its predecessor.
Speaking about feedback from the latest rounds of regional conferences organised by the PFS, which were attended by more than 5,000 advisers, PFS chief executive Keith Richards said the regulator had been praised for the content of its talks as well as for its approach.
He said: “As well as being impressed with the content, our members were quick to acknowledge a more constructive approach, and the willingness of presenters, Mark Goold and Rory Percival, to make themselves available and answer a range of questions.”
Last April the FSA was abolished and replaced by two successor organisations, the Bank of England’s Prudential Regulatory Authority and the FCA, which covers firms’ interaction with consumers.
Mr Richards added: “The FSA had developed a reputation for focusing almost entirely on telling advisers what they were doing wrong, which more often frustrated the sector.
“The FCA has replaced that adversarial approach with a spirit of co-operation and the promotion of good practice.
“The regulator’s view of what good looks like is far more inclined to influence the delivery of better consumer outcomes.”
The continuing professional development events were held across 26 regions by the PFS. For sessions held in the second quarter of the year, the FCA focused on risk and suitability. In the third quarter it changed its focus to adviser charging and disclosure.
Mr Richards said: “I detect that a growing proportion of those who have encountered the FCA first-hand would not disagree that a change is evident and beginning to make a significant difference.
“The important role financial advice has to play in the future is being increasingly recognised by government and consumer bodies, and it is equally encouraging to hear the regulator acknowledge that tangible progress is being made within the financial planning sector.”
FCA Comment
Clive Gordon, FCA head of investment advisers and platforms, said: “Advisers offer a vital service, and I look forward to continuing our constructive engagement with the sector.”
