I say “Go on” to the Financial Conduct Authority – the Government’s new division of super heroes determined to fight back against the illegal and immoral companies in the UK finance market.
What Does the Financial Conduct Authority (FCA) do?
The Financial Conduct Authority (FCA) will replace the existing Financial Services Authority (FSA). The current situation means that the FSA may know there is a problem with a product or company but must make the necessary regulatory checks and balances before it can issue warnings, fines and eventually revoke the licence. The new FCA has the power to close businesses immediately.
The Financial Conduct Authority has come into play because people were being ripped off by unethical products. If we reduce unethical financial products people will be less likely to fall into financial traps.
Shoot First, Ask Questions Later
I loved the quote from the Chief Executive of the Financial Conduct Authority, Martin Wheatley, he said “We’re going to shoot first and ask questions later”. This is a bold and transparent message to companies in the UK who choose to exploit vulnerable people.
Already, payday loan companies are being targeted heavily and many will shortly lose their licences. There is even talk that it could take 2 years and far more scrutiny of risky forms of lending and money advice to be accepted and provided with a licence.
There are people bemoaning the changes across the internet and complaining about the “Nanny State” but in my opinion it’s about time. If a company isn’t doing anything wrong then why would it worry about the FCA? There are companies making millions from the misery of others and it’s got to stop.
I’m not a brain surgeon so, obviously, I know nothing about brain transplants. As a result, I rely on a surgeon for this advice and service. People who are not financially savvy are exactly the same! We need experts to keep us on track so we can ensure opportunistic companies are not exploiting vulnerable people.
In short, if a company is worried about increased regulation should they not be reviewing their own policies and procedures? Are they risky or providing poor advice? Should we really accept companies who don’t want regulation?