Verdict: Bamford and Cann on the FCA

Informed Choice chief executive Nick Bamford and chief executive of the Institute of Financial Planning Nick Cann give their verdict on yesterday's Financial Services Authority meeting on the future of regulation.

This week the FSA held a conference on the future 'Approach to Regulation' and philosophy of its successor the Financial Conduct Authority (FCA). Nick Bamford and Nick Cann give their verdict from the audience.

Nick Bamford

Chief executive, Informed Choice

"It is dead easy to be the critic of the financial regulator but somewhat harder to get involved in the process of ensuring future regulator can make a better fist of it.

The numbers for mis-selling costs are truly staggering, at about £1bn of consumer detriment for every year of financial services regulation.

Another big figure raised was the £500m annual cost of regulation. I think we should always remember fines and annual regulatory costs are paid for by the consumer under the principle of "the consumer always pays".

So what was the FCA asking from the audience of representatives from all sectors of the financial services "industry?" (we are the professional part of that industry).

That the "DNA" of authorised and regulated firms should be to always act in the best interests of the consumer. A fair ask in my view.

However, it is somewhat galling to be lectured about how the financial services sector has lost all consumer trust when one has spent their entire career actually trying to build and develop such trust. But the criticism is fair in the round.

We all need to get behind the regulator and ensure the next four or five years are not a repeat of the last 20 plus years with serial mis-selling scandals that blight our collective good names.

Engage in the development of the FCA and then if it doesn't turn out the way we want it to at least we can say that we did our best.

I am not sure the FCA is listening any longer to those bloggers who do nothing but insult them and call names. Now is definitely the time for grown up engagement with the regulator."

Nick Cann

Chief executive, Institute of Financial Planning

"Attending the FSA's "Approach to Regulation" conference this week was an unusual experience. Unusual perhaps because I didn't recognise too many people there.

There was no representation from the independent sector on the panels and no voice to talk to the improvements that have been made and how indeed these might be recognised.

Financial services covers a vast area; financial planning is a vital but small and distinct part of the sector.

It is crucial however to ensure the FCA has a full understanding of the sector and consumer benefit.

There was great disappointment yesterday and clear evidence of gaps that the FSA needs to fill before 2013.

However Hector Sants and Margaret Cole made clear they expect senior management to take their customer responsibility far more seriously in future.

They also raised a number of other good aspects of a change programme that will further shape the regulatory framework of the future.

In this world of greater consultation there is a great opportunity for us to help the FSA/FCA shape a more effective regulator.

Watch the conference HERE

Comment on the Approach to Regulation document HERE