On 23rd April, Andrew Bailey, Chief Executive of the FCA, released a statement on the future of financial conduct regulation. He used a four lens approach when looking at conduct regulation. These can be summarised as:-
- Lens one: public interest objectives should be advanced, regulation is a public good, benefits are open to all and can be consumed by all.
- Lens two: the changing purpose of regulation; the purpose of regulation and how it is changing through competition and innovation.
- Lens three: Brexit
- the extension of Article 50 is welcomed in order to allow the FCA time to prepare for a full range of scenarios;
- the FCA will continue to work with EU27 counterparts on legislation in development as well as continuing to be an active member of the ESMA;
- Bailey suggests that the UK regulatory system may change on Brexit and will be founded more on learning’s from public policy and enshrined in principles rather than detailed rules, which can become overly set in stone.
- Lens four: having clear principles; there is a good case for enhancing the FCAs principles and their standing and practical impact. Bailey also touched on the proposed Duty of Care for authorised firms which was also published on 23rd April.