Industry satisfaction and understanding of FCA increases

"The survey also reflects concerns amongst firms about the uncertainty ahead for the financial services sector and we remain committed to delivering effective regulation"

The survey gives a view across the financial services sector of the FCA’s performance as a regulator and provides the opinions of more than 2,000 regulated firms.

The results show that the industry’s satisfaction with its relationship with the FCA and its rating of the FCA’s effectiveness have continued to increase. Firms’ overall rating for the FCA’s effectiveness, which was 6.7 out of 10 last year, has risen to 7.0. Satisfaction with the regulator has increased steadily, from a low of 5.4 out of 10 in 2010 to 7.5 this year.

Understanding of the FCA’s competition objective, which is the newest of the objectives, has consistently scored lower than the others in previous years. This year, however, 60% of firms reported that they were very or fairly confident in this objective, up from 56% last year.

Last year there were lower levels of satisfaction in the long-term savings and pensions sector. The Practitioner Panel encouraged the FCA to focus on this area in particular, and this year the FCA reported that "there have been significantly more positive results for this sector".

Discussing areas for improvement, the survey stressed the importance that firms, in particular consumer credit firms, clearly understand the FCA’s remit.

Respondents also wanted the FCA to communicate directly and clearly with firms about Brexit and to be more transparent about future plans relating to the volume of regulatory change which makes demands on firms’ resources.

António Simões, Chair of the FCA Practitioner Panel, commented: “We are encouraged by the findings of this year’s survey that there has been progress against all three of the FCA’s operational objectives. Last year we identified that there were concerns around the competition objective, and that the life and pensions industry was more generally dissatisfied with the work of the FCA than other sectors. To see progress against both these points is a sign that the regulator is heading in the right direction. The Panel will continue to work with the FCA to address the issues raised in the survey about communication, volume of regulation and the challenges of Brexit.”

Andrew Bailey, Chief Executive of the FCA, said: “We are pleased that firms continue to rate our performance as a regulator highly. But we know that we can always do better and the survey is very helpful in identifying a number of areas for improvement. In our Mission we committed to be more transparent, communicating clearly with firms so that they understand our role, remit and expectations. The survey also reflects concerns amongst firms about the uncertainty ahead for the financial services sector and we remain committed to delivering effective regulation which will enhance the UK financial system in the future.”