David Miller, Partner, KPMG UK, responds to the FCA’s 2018/19 business plan
David Miller, Partner, KPMG in the UK, responds to the FCA’s 2018/19 business plan, announced today saying:
"The FCA has placed an understandable focus on its response to EU withdrawal, its progress will be watched closely as the industry seeks to advance its own Brexit plans. The FCA is clearly having to make some hard choices about how to prioritise its activity across the rest of the market.
“The focus on consumer vulnerability and access to financial services is key and underlines the challenge the regulator faces in successfully balancing innovation and big data with good customer outcomes in its approach to regulating in a more digital world. The FCA’s planned interventions seek to target areas of potential customer harm but crucially firms have to recognise it falls to them to have the right culture and governance in place to protect the end users of financial services. Whilst firms are doing everything they can to improve culture by complying with regulations such as SMCR, regulation alone will not suffice.
“The decision to extend sandbox globally reinforces the UK’s position as a leader in fintech innovation and regulation. The emphasis so far has been on encouraging innovation but we are now entering a much trickier phase for regulators, who have to identify, assess and respond to the risks not just the benefits and opportunities.
“Time will tell if the need to manage Brexit will impact the FCA’s ability to effectively regulate conduct and protect customers.”
Notes to editors:
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About KPMG in the UK
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.