IMA expresses reservations about Draft Financial Services Bill Report

19 December 2011

Richard Saunders, IMA's CEO, said that IMA supports the call for the recommendations of the Independent Commission on Banking to be implemented early and is pleased that the Committee has proposed a single independent complaints commissioner to deal with both regulators.

Welcoming the Report of the Joint Committee on the draft Financial Services Bill, Richard Saunders, chief executive of the Investment Management Association said: “The Joint Committee has rightly acknowledged the importance of the need for the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) to coordinate in order to deal effectively with EU regulation. While the Committee has recommended enhancing the FCA’s objectives to give it the task of ensuring that all participants benefit from better functioning financial markets, we remain disappointed that the FCA has not been given a remit to promote competitiveness.  And the sweeping power of the PRA to veto decisions by the FCA still remains – a power which has the unwelcome effect of always prioritising stability over consumer protection.  IMA continues to argue that all asset management firms should remain within the scope of the FCA notwithstanding the recommendation that some investment firms are to be brought within the scope of the PRA.”

Press release

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