Consumer credit firms “less satisfied” with regulator
CONSUMER credit firms have a lower awareness of the objectives of the Financial Conduct Authority compared with other regulated businesses.
An annual survey on perception of the regulator, compiled by the City watchdog, found 71 per cent of consumer credit businesses have a clear understanding of the FCA’s role in protecting consumers.
In comparison, 89 per cent of other regulated firms said they understood the FCA’s objectives.
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Satisfaction levels were also lower among consumer credit firms, with 73 per cent satisfied with their relationship with the regulator, compared with 77 per cent among non-consumer credit firms.
Despite a lower level of awareness and satisfaction, consumer credit firms do seem to have greater confidence in the regulator.
Seven in 10 consumer credit firms were confident that the FCA met its objectives, compared with 60 per cent of other businesses.
The regulator said the survey showed it needed to work harder to ensure consumer credit firms understand its remit.
“We are pleased that firms continue to rate our performance as a regulator highly,” Andrew Bailey, chief executive of the FCA, said.
“But we know that we can always do better and the survey is very helpful in identifying a number of areas for improvement.
“In our mission report we committed to be more transparent, communicating clearly with firms so that they understand our role, remit and expectations.
“The survey also reflects concerns amongst firms about the uncertainty ahead for the financial services sector and we remain committed to delivering effective regulation which will enhance the UK financial system in the future.”