Update on call for input on wholesale markets’ access to and use of data
The FCA has published an update on its call for input (CFI) on access to, and use of, data within the wholesale markets. The CFI was initially scheduled to be issued in Q2 2019/ 20, however the regulator has chosen to postpone publication to avoid overburdening potential respondents, which are likely to be busy preparing for the EU withdrawal.
The FCA remains committed to investigating the new and wide-ranging innovations in the data markets and how wholesale markets are using the new tools that are available. There is the potential for these innovations to give rise to new harms and risks that firms and the regulator need to mitigate or weaken competition. However, no updated timeline for the CFI has been issued at this time.
[Speech] Fighting skimmers and scammers
Charles Randell, Chair of the FCA, recently gave a speech at the 37th Cambridge International Symposium on Economic Crime. We bring you the key takeaways.
Instances of financial crime have reached epidemic levels, particularly investment fraud. The FCA has a responsibility to ensure the markets work well for consumers, with appropriate levels of protection. Much of this depends on the system the FCA operates in, which is why the regulator continues to invest heavily in intelligence and data analytics tools.
In Mr Randell’s view, there is little moral difference between the ‘skimmers’, those who engage in exploitative or unscrupulous practices, and financial criminals – ‘scammers’. The FCA needs to act quickly against both types, using all the powers available to it, including criminal prosecution where appropriate.
The FCA’s strategy for tackling investment fraud has three components:
- Closely monitor the authorised activities of the firms it regulates through its supervisory activity
- Communicate the risks of scams to consumers
- Take action to shut down unauthorised firms or investment schemes.
For this approach to be effective, the entire system needs to work together more coherently. Building financial crime assessments into new products and making the regulatory boundary easier to understand will help. But firms external to the financial services industry must also play their part to ensure personal data is securely stored and consumers are protected.
FCA appoints new Chief Economist and Chair of the Smaller Business Practitioner Panel
The FCA has announced two new appointments.
In October, Kate Collyer will take up the role of Chief Economist, leading the department’s research projects to support the FCA’s objective of ensuring financial services markets work effectively and evidence the impact its interventions have.
Ms Collyer is currently the Chief Economist for Energy and Market Frameworks and joint Director of Analysis at the Department for Business, Energy and Industrial Strategy (BEIS).
A new Chair of the Smaller Business Practitioner Panel has also been appointed, also effective from 1st October. Marlene Shiels, Chief Executive of Capital Credit Union, will succeed Craig Errington, Group Chief Executive of Wesleyan. The Smaller Business Practitioner Panel is designed to ensure the views and challenges of smaller businesses are taken into account during the regulatory process.