Retail investment firms rate FCA’s effectiveness at 6.7 out of 10

Maria Nikolova

The effectiveness score given by retail investment firms to the UK regulator was lower than the average given by all regulated firms.

The UK Financial Conduct Authority (FCA) has earlier today published a report summarizing the findings of a survey of FCA-regulated firms. The survey gives views across the financial services sector of the FCA’s performance as a regulator. The report details the results from the 2019 survey, which took place between January and April 2019.

A total of 10,022 firms were invited to take part, this included all fixed portfolio firms and a sample of flexible portfolio firms. In total, 2,888 firms completed the survey, at a response rate of 29%. An additional 2,500 consumer credit firms were invited, 148 of which took part.

Inter alia, firms were asked to rate their satisfaction with the relationship they have with the FCA, and how effective the FCA has been in regulating the financial services industry in the last year. Retail investment firms gave the FCA a rating of 6.7 when it comes to effectiveness. This is lower than the 7.2 across all sectors. The satisfaction with relationship with the FCA was 7.4 among retail investment firms, also lower than the rating of 7.6 across all firms.

The FCA used a specific supervision categorisation in the survey, classifying respondents either as Fixed portfolio firms or Flexible portfolio firms.

Fixed portfolio firms are a small population of firms (out of the total number regulated by the FCA) that, based on factors such as size, market presence and customer footprint, require the highest level of supervisory attention. These firms are allocated a named individual supervisor and are proactively supervised using a continuous assessment approach.

Flexible portfolio firms are proactively supervised through a combination of market-based thematic work and programmes of communication, engagement and education actively aligned with the key risks identified for the sector in which the firms operate. These firms use the FCA Customer Contact Centre as their first point of contact as they are not allocated a named individual supervisor.

Let’s note that almost all Fixed firms (97%) have accessed FCA guidance about preparation for the UK’s withdrawal from the EU. Half of Flexible firms have done so (50%). Among those who have accessed guidance, 77% of Fixed firms and 73% of Flexible firms found it helpful.

When asked what guidance or support they would most like from the FCA during any transition period following the UK’s withdrawal from the EU, the most common responses from both Fixed and Flexible firms were:

  • clear guidance on changes to regulatory requirements;
  • regular updates from the FCA,
  • and tailored guidance for each sector.

Satisfaction among Fixed firms has fallen since 2018, from 7.3 to 6.9, while the effectiveness score has remained relatively stable (6.8 in 2019, compared with 6.9 in 2018).

Read this next

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

“The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

<