Members from the finance industry have stated that too much regulatory focus on consumer protection could run into risk-aversion, preventing the Financial Conduct Authority (FCA) from fulfilling its secondary objective of achieving growth and competition in the UK.
Speaking before the Treasury Committee on 3 December, New Financial think tank founder and managing director William Wright said media and political scrutiny have a tendency to "default to consumer protection", which forms part of the primary objective of the FCA. Because of heightened focus on consumers, the watchdog, "and to a lesser extent the Prudential Regulation Authority" face a "near impossible job" in striking a balance between consumer protection, market stability and integrity, as well as competition, Wright added. UK Finance chief executive David Postings noted instead tha...
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