Following its review into embedding ‘Treating Customers Fairly’ (TCF) in March, the regulator admitted that smaller firms were increasingly under its regulatory radar, and that it would be looking at improving its practices. As part of the changes, which were designed to help the regulator obtain a better understanding of small firms, the FSA confirmed it would be undertaking visits and telephone interviews, in an effort to pinpoint the firms and market sectors most in need of regulatory attention.
However, in undertaking a review into the small firms within the market, the regulator admitted that its dealings with small firms needed to improve.
Mandy Spink, head of mortgages and credit unions in the small firms division of the FSA, said: “We have a rolling programme in place that will visit or telephone every small firm. We are building on our existing strategy and already have over 60,000 hits a month on our small firms website, but, following our March 2007 TCF results it was clear that we needed to give more guidance to small firms.”
However, Spink added that the current regulatory environment had moved away from remedy to enforcement, a move that could see small firms reassess their position within the market.
Hugh Nichols, proprietor at Badbury Berkeley Financial Services, agreed that the FSA needed to improve its handling of small firms. He said: “I think that small firms do need advice and should be visited, but it should be risk based. Some people are not following the rules merely through ignorance, and I don’t think it would be a bad thing if more people were under a network umbrella.”
