City watchdog grows new teeth

Nicolas Herbert-Young of the Financial Conduct Authority

AERL members were given an overview of the role of the Financial Conduct Authority (FCA) within the UK’s new regulatory structure following the financial crisis.

Nicolas Herbert-Young explained to economic attachés the powers of the FCA, whose primary role is a watchdog looking out for misconduct and ensuring that financial institutions put consumer interests first. Companies who miss-sell products – such as payment protection insurance (PPI) or payday lenders – face hefty fines, warned Herbert-Young.

The FCA, in conjunction with the Prudential Regulatory Authority (PRA), also has a supervisory role to identify risks to the integrity of the financial system.

The international department of the FCA liases with other financial authorities on regulatory approaches. It also works with regulators to combat cross-border financial crime.

Herbert-Young said the aim of the strict enforcement by the FCA was to change the culture in finacial institutions.
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