FCA chief says regulators must help fintech disrupt banks
(16 May 2016 – United Kingdom) The Financial Conduct Authority’s (FCA) chief executive has said London’s regulators should “be bolder” and ensure new market entrants can disrupt incumbents, even if it appears to let risks into the financial sector.
The FCA’s outgoing chief, Tracey McDermott added that officials too often end up “tinkering on the margins” of the financial system and only look out for risks, rather than seeing the opportunities arising from new technologies.
“There is a risk that as regulators we can treat the status quo with too much reverence, with our efforts focused on ensuring the status quo works better than it does today,” she told the City Week conference.
“Natural caution… can at times risk us tinkering on the margins and perhaps standing in the way of more fundamental change. In today’s era of rapid technological development and social and demographic changes, we may need to be bolder, to be prepared to re-examine and re-think the status quo.”
The speech could also be a sign of the new direction in which the FCA is heading. McDermott is stepping down from her role as interim boss of the regulator to be replaced in July by Andrew Bailey, who is joining from the Bank of England.
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