27 Oct Treasury Select Committee Warned Of New Financial Authority’s Powers
The Treasury Select Committee (TSC) have been warned by Angus Eaton, Aviva operational and regulatory risk director, that the new Financial Conduct Authority will have the power to issue warning notices to firms without consultation.
He believes that such a power could threaten the confidence in such services, should it be abused, stating "I think our fear on warning notices is that it could be a tool that is used to publicise potential investigations, and not used in a measured way, that itself could undermine the reputation of the industry as a whole.
"It's all about measured approach; if this is a tool used in an unfettered way then we do have a fear it will undermine the confidence in the industry that is already delicate."
Fidelity head of public policy Philip Warland claims that increased power for the regulatory decisions committee (RDC) could help to curtail any possible abuses. He stated "If we get a constant stream of these things, some of which will turn out not to stand up, then it will damage confidence.
One idea we have is to involve the RDC and make them a statutory body and let them make the judgment that it is in the public interest.
As a reserve power it is difficult to argue against but it is how it will be used that is the issue."