The Wealth Net – “FCA’s likely regulatory approach ‘very refreshing’”
UK’s Financial Conduct Authority (FCA) announced that conduct was the “new watchword” for regulators, which is “refreshing”, according to Gina Miller, co-founder of SCM Private and head of the True and Fair Campaign.
“It is refreshing that the new regulator has stated that he intends to make sure markets work well in the interests of consumers, and is determined to “shoot first and ask questions later”. We have under-covered systematic abuse of the consumer within the fund management industry and have highlighted numerous shoddy practices backed up by extensive research,” Ms Miller said.
Ms Miller believes it is “scandalous” that SCM Private felt there was no other alternative than to start a campaign to lobby for the regulator to force fund managers to reveal exactly how much their products really cost and exactly where they are invested.
“We have received numerous enquiries from other regulators and government bodies for our research, but are yet to have received any interest regarding these important consumer issues from the FSA.”
Ms Miller is adamant that unless the new FCA acts very quickly to address these issues, there is growing evidence that people will increasingly turn their backs on pensions and savings generally, which is a “major embarrassment” for the financial services industry.
“To ensure real and consistent improvements in transparency, standards must be imposed by governing bodies or there will be vast discrepancies in disclosure and consumers will continue to be left in the dark about the real cost of their investments,” she said.
Ms Miller concluded that the new regulator needs to “aim its gun” on those stifling change and acting against the needs of consumers.
“Unless the sleepy fund management industry wakes up to this, it will follow in the footsteps of the UK textiles and coal industries and follow a long and steady demise.”
Posted By: True and Fair, 10:39 am