Firms call for greater clarity from FCA as Mission key themes announced

FCA-Building-Blue-Sky-700x450.jpgThe FCA has published initial feedback on its new Mission document as firms looks to the regulator for greater clarity on its future direction.

In an update this morning, the FCA has outlined four key themes that have emerged as firms respond to its consultation on a new document which will give greater detail on the regulator’s strategic underpinning.

The regulator has highlighted that firms are looking for clarity and a sense of direction from the regulator, as well as more active engagement from the FCA on what practices it wants to see.

The FCA says: “Respondents are keen on a clearer rationale for our decisions, what we choose to do and not to do.”

“Respondents think we should adopt a more active role in sharing lessons learned and good practice. Respondents would like more tailored communications that illustrate risks for their particular market.”

However, those that have inputted to the consultation so far are split on the role of rules and principles at the regulator.

The FCA says: “Some respondents are keen on clear sets of principles for business rather than prescriptive rules while others prefer more clarity on existing rules as they feel these are often too vague.”

The regulator is asking for feedback on where it should use prescriptive rules and where higher level principles may work better.

Finally, the regulator is asking for responses to help define a “vulnerable consumer” and how they should be protected after many firms said that vulnerable consumers should be safeguarded.

The FCA says: “Respondents largely agree with affording more protection to vulnerable consumers but have different views on who a vulnerable consumer is and emphasise the need for clear definitions.”