FCA chief defends agency amid claims of incompetence

In the United Kingdom, criticism of the Financial Conduct Authority (FCA) has intensified, particularly from a cross-party group of MPs. The group accused the FCA of being "incompetent" and highlighted the deterioration of its culture. This comes in the context of ongoing scrutiny regarding the FCA's handling of various financial scandals, including the Neil Woodford investment issues. Nikhil Rathi, the chief executive of the FCA, addressed these allegations by emphasizing that the organization is tackling financial crime more comprehensively than it ever has before. He insisted that the FCA has improved its efforts, with a notable increase in the number of prosecutions for financial crime. Rathi's statements aimed to counter the narrative presented in the MPs' report, which stressed a lack of significant reform within the FCA despite years of controversy. The report also raised concerns about potential conflicts of interest within the FCA, claiming it may be too aligned with the banks and financial institutions it regulates. The MPs suggested that the FCA should focus solely on consumer protection rather than trying to balance consumer interests with economic growth. Rathi acknowledged this debate but defended the necessity of economic growth initiatives, stating that they can introduce increased risks to consumers. He argued that the FCA is already highly transparent in its operations and holds itself accountable through regular appearances before Parliament and by publishing detailed data. Following the publication of the MPs' report, the Treasury noted that many of the issues raised have been addressed through changes made by the FCA, further complicating the narrative around the agency's effectiveness and accountability in recent years.