It is one of the strongest and most rigorous regulating bodies around, and it sets the British financial services industry apart from the rest of the world.
However, at times it feels as if the FSA does not value all the good work that goes on, not to mention the fact that many companies are going above and beyond the basic regulations. At the moment, all the general public sees are the failures and the frauds, when in reality these form only a tiny proportion of the market as a whole.
The ‘name and shame’ policy has turned best practice into something of a box-ticking exercise. Companies are fulfilling regulations because they have to rather than because it is the right thing to do. ‘Treating Customers Fairly’ (TCF), for example, should be at the heart of every financial services business, not just a list of bullet points to tick off as and when they are achieved.
The FSA must continue to crack down on poor performers, and it could go even further in exposing and punishing those who do not comply. However, it should also look into publicly praising companies that have embraced the regulations and taken them to another level. Not only would this highlight the best organisations to consumers and reward them accordingly, but it would also provide an incentive to those who currently stick to the bare minimum of compliance.
The FSA needs to highlight the golden boys of financial services as well as the black sheep. The industry will be more inclined to go the extra mile, and this can only be of benefit to consumers.
Tim Wheeldon
Managing director
Loanmakers
