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☆ FCA chief: UK regulation needs to spur growth as well as protect investors
▼ + stars: | 2024-11-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFCA chief: UK regulation needs to spur growth as well as protect investorsNikhil Rathi, chief executive of the FCA, discusses the U.K. chancellor's maiden Mansion House speech.

Persons: Nikhil Rathi Organizations: FCA

☆ Britain's banks slow in passing higher rates to savers -watchdog
▼ + stars: | 2023-07-19 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, July 19 (Reuters) - Britain's banks are not passing on higher interest rates to savers fast enough, though this is expected to accelerate in coming months as a new duty to provide good outcomes for consumers comes into force, UK financial regulators said on Wednesday. Interest rates in Britain have risen from record lows near zero percent during the COVID-19 pandemic to 5%, with more rises expected to quell inflation, sending borrowing costs higher. "The pace has simply not been fast enough," Financial Conduct Authority Chief Executive Nikhil Rathi told parliament's Treasury Select Committee. The duty comes into force on July 31 and Rathi told lawmakers it was the watchdog's most significant intervention across all types of firms in two decades. There is no need for a formal "savings charter" among banks on savings rates given the watchdog needed to be careful about coordinating pricing decisions in what is a "reasonably competitive market", Rathi said.

Persons: Nikhil Rathi, parliament's, Rathi, Ashley Alder, Alder, Huw Jones, Peter Graff, Bernadette Baum Organizations: FCA, Thomson Locations: Britain

LONDON, July 19 (Reuters) - Britain's markets watchdog said on Wednesday it was determined to tackle complex and often sensitive cases involving non-financial misconduct and would unveil guidance on diversity inclusion in the financial services industry in September. Nikhil Rathi, the CEO of the watchdog, told a committee of lawmakers on Wednesday that the agency would investigate non-financial misconduct cases on the basis that they were relevant to "fit and proper" standards of behaviour necessary for work in financial services. He also said that the FCA and Bank of England would be "clarifying guidance" on diversity inclusion in September, which could help spell out what constitutes "non‑financial misconduct". Rathi told lawmakers that, as a financial regulator, non-financial misconduct cases have to hinge on whether they affect consumer protection, market integrity and effective competition. But Rathi also encouraged people bringing serious allegations of non-financial misconduct to go to the police or speak to the FCA through its whistleblower hotline.

Persons: Crispin Odey, Odey, Nikhil Rathi, Rathi, Ashley Alder, Kirstin Ridley, Nell Mackenzie, Jane Merriman Organizations: Financial Conduct Authority, FCA, Bank of England, Asset Management, Financial Times, Reuters, London's Metropolitan Police, Thomson Locations: Odey

☆ Use of AI in finance likely to trigger rise in fraud, says UK watchdog
▼ + stars: | 2023-07-11 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, July 12 (Reuters) - Applying artificial intelligence (AI) to financial services must go hand-in-hand with better fraud prevention and resilience to hacking and outages, Britain's Financial Conduct Authority (FCA) was expected to say on Wednesday. AI's use can benefit markets, such as cutting prices for consumers, but also cause imbalances if "unleashed unfettered", Rathi will say. "This means that as AI is further adopted, the investment in fraud prevention and operational and cyber resilience will have to accelerate simultaneously," Rathi will say. We will remain super vigilant on how firms mitigate cyber-risks and fraud given the likelihood that these will rise." The watchdog has already observed how volatility during the trading day has doubled and amplified compared to during the 2008 global financial crisis.

Persons: Nikhil Rathi, Rathi, Huw Jones, Mark Potter Organizations: Authority, Wednesday, Big Tech, Thomson

☆ Britain considers tougher scrutiny of pension fund trustees
▼ + stars: | 2023-07-11 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Finance minister Jeremy Hunt on Monday set out plans to increase pension fund investment in unlisted companies and mandatory consolidation of poorly performing schemes. Many trustees work voluntarily while retired, on in a full time job, and can struggle to stay on top of things, the paper said. "Evidence from Australia’s 'constructively tough' approach to supervision of trustees shows the importance of focusing on good governance to improve results for members," the paper said. Regulators questioned the skills of trustees who signed off on using liability-driven investment (LDI), which struggled last September to come up with enough collateral. FCA CEO Nikhil Rathi has said that a smaller number of defined benefit schemes using professional trustees might be better at delivering long-term investment.

Persons: Jeremy Hunt, Australia’s, Nikhil Rathi, Huw Jones, Mark Potter Organizations: Regulators, Financial, Authority, Thomson

☆ Britain takes further step towards London listings overhaul
▼ + stars: | 2023-05-02 | by ( Iain Withers | ) www.reuters.com time to read: +2 min

LONDON, May 2 (Reuters) - Britain's stock market rules could be radically simplified as part of efforts to lure major company listings to London, under detailed plans unveiled by the country's financial watchdog on Tuesday. "We want to encourage more companies to list and grow in the UK, versus other highly competitive international markets," said FCA chief executive Nikhil Rathi. While the watchdog said it was committed to maintaining high standards, some experts expressed concerns at the reform push. The FCA said it aimed to make "substantial progress" on the reforms by the end of this year. Reporting by Iain Withers Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ UK watchdog to ensure savers benefit from interest rate rises
▼ + stars: | 2023-04-20 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, April 20 (Reuters) - Britain's financial watchdog said on Thursday it would use new, tougher consumer protection powers from July 31 to ensure banks pass on increases in interest rates to savers, and further action was not ruled out. The Financial Conduct Authority (FCA) will begin phasing in its "consumer duty" from July 31, giving it stronger powers to ensure that the companies it regulates act in the best interest of their customers. Since December 2021, the Bank of England has increased interest rates from nearly 0% to 4.25%, with markets expecting another increase next month. "Given rising interest rates and firms' performance on base rate pass-through we have considered whether we should restart this work," Rathi said. "However, we believe the Consumer Duty gives us greater flexibility to react to market developments, rather than needing to introduce detailed and prescriptive rules."

☆ Britain eyes shake-up in listing rules to attract more company flotations
▼ + stars: | 2023-03-29 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, March 29 (Reuters) - Britain's financial watchdog said on Wednesday it will consult on streamlining its company listing rules to help London compete better with New York in company floats. It said it would consult on replacing its twin-track standard and premium company listing regime with a single regime and set of requirements. Britain made some changes to listing rules in 2021 to help attract tech company flotations as part of a wider set of reforms to keep London a globally competitive financial centre after being largely cut off from the European Union by Brexit. The watchdog will propose scrapping requiring companies to have a three-year financial track record as a condition of listing, a challenge for start ups, Rathi said. A more permissive approach to dual class share structures - whereby founders can retain control of a company - would also be proposed.

☆ Dampened rate expectations ease pressure on borrowers, says UK watchdog
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

The Financial Conduct Authority (FCA) said that in addition to households already behind on payments, 356,000 mortgage borrowers could face payment difficulties by the end of June 2024, but that is far fewer than a previous FCA estimate of 570,000. Those rolling off a fixed rate mortgage deal could end up paying an additional 340 pounds ($404.84) a month on average, the FCA said. Nikhil Rathi, FCA chief executive, told parliament on Wednesday that the watchdog had intervened in over 30 firms that had not treated borrowers in difficulty fairly. "The leadership of banks understand their reputations are at stake if they don't handle things appropriately in coming months," Rathi said. ($1 = 0.8398 pounds)Reporting by Huw Jones; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.

☆ UK banks say consumer safeguard could backfire in cost of living crisis
▼ + stars: | 2022-11-16 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

REUTERS/Maja SmiejkowskaLONDON, Nov 16 (Reuters) - Britain's banks are proactively helping customers hit by the cost of living crisis, but implementing a new "consumer duty" on time could exclude vulnerable consumers from help, banking industry body UK Finance said on Wednesday. UK Finance chief executive David Postings said portfolios of lenders have so far stood up to current economic stresses. It is more critical than ever that borrowers and savers are offered fair and competitive rates, Rathi added. UK Finance chair Bob Wigley said he anticipated that finance minister Jeremy Hunt's fiscal statement on Thursday would help restore Britain's "traditional reputation for sound management of public finances" after turmoil in UK bond markets in September. Banks hope Hunt will announce a cut in the tax surcharge on their profits.

☆ UK banks were slow to pass on rate hikes to savers, says watchdog
▼ + stars: | 2022-11-07 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Nov 7 (Reuters) - Britain's banks were slow to start passing on increases in central bank interest rates to savers and consumers should consider switching to another UK lender, the Financial Conduct Authority said on Monday. Banks have been quick to pass on higher interest rates to their mortgage customers, but savers are also keen to get better returns after years of record low central bank interest rates. "It was a slow start," FCA Chief Executive Nikhil Rathi told parliament's Treasury Select Committee. FCA acting chair Richard Lloyd said data so far suggest that the pass through of higher rates to savers is not as bad as the watchdog might have feared. The number of customers in arrears, however, is still the lowest since 2007, though banks should be proactive in helping their customers, Rathi said.

☆ Britain to go it alone for now on reining in 'shadow banking'
▼ + stars: | 2022-11-02 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

Britain hopes the LDI crisis creates momentum for comprehensive global reform to improve data and liquidity in the sector. In Britain the Financial Conduct Authority (FCA) regulates UK-based managers of LDI funds, and The Pensions Regulator (TPR) regulates pension schemes. UK regulators face pushing ahead alone, for now, hoping global reforms eventually pressure others to follow suit. Most LDI funds are listed in European Union states like Luxembourg and Ireland, meaning structural changes would rely on the bloc. The Central Bank of Ireland said it has stepped up data collection, analysis and engagement with LDI funds.

☆ UK regulator's head of enforcement to step down in 2023
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: 1 min

LONDON, Oct 18 (Reuters) - Mark Steward, head of enforcement at Britain's Financial Conduct Authority (FCA), is stepping down early next year, the markets watchdog said on Tuesday. The FCA said it would begin a global search for his successor shortly. "Mark has brought his formidable experience as a regulator and as a litigator to the FCA, delivering significant enforcement cases across a broad spectrum, as well as the FCA’s data-led approach to market oversight," said FCA Chief Executive Nikhil Rathi. Steward, who said it had been "a privilege to serve the FCA throughout many challenges over the last seven years", joined the watchdog in 2015. Register now for FREE unlimited access to Reuters.com RegisterReporting by Kirstin Ridley and Carolyn Cohn Editing by David GoodmanOur Standards: The Thomson Reuters Trust Principles.

☆ Britain's markets watchdog ups curbs on retail investment firms
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +2 min

LONDON, Oct 18 (Reuters) - Britain's markets watchdog curbed activities of twice as many consumer investment firms in the last financial year as the previous year, it said on Tuesday, as it seeks to clamp down on poor financial advice and scams. It also stopped the UK operations of 16 contracts for difference providers where it suspected scams, or where consumers were encouraged to trade excessively to generate revenue. Without FCA action, consumers could have lost around 100 million pounds ($114.28 million) a year, the watchdog said. The FCA said it published more than 1,800 consumer alerts about unauthorised firms or individuals last year, 40% more than the previous year. ($1 = 0.8750 pounds)Register now for FREE unlimited access to Reuters.com RegisterReporting by Carolyn Cohn and Kirstin Ridley; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ Britain warns of tighter rules for crisis-hit LDI funds
▼ + stars: | 2022-10-12 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

The FCA regulates asset managers who sell and run LDI strategies, while TPR regulates pension funds. The BoE oversees banks, some of which are part of the LDI chain. LDI is a popular product sold by asset managers to pension funds, using derivatives to help them match assets with liabilities so there is no risk of a shortfall in money to pay pensioners. Pension funds struggled to come up with higher collateral calls to back the derivatives used in the strategy, forcing the BoE to intervene in the gilts market. Given many LDI funds are listed in Dublin or Luxembourg, the European Union would also need to make reforms to implement such requirements.

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