12th September 2014

APFA calls on FCA to reduce ‘overly prescriptive’ regulation to improve innovation

The Association of Professional Financial Advisers (APFA) has responded to the FCA’s call for input on the Project Innovate, calling on the regulator to reduce regulatory barriers in order to improve innovation among the advice profession.
 
Chris Hannant, Director General at APFA, commented:
“We welcome the FCA’s recognition that it needs to think and act differently in order to help firms innovate. However, the FCA also needs to recognise the role it plays in creating the compliance driven, risk adverse environment which hinders innovation.
 
“The FCA handbook is overly complicated, and understanding the rules is a complex and often costly process for firms, some of which feel the need to employ compliance specialists. This overly prescriptive environment is a barrier to innovation for any regulated business seeking to make changes to the way it operates.
 
“It is also critical that in seeking to help some firms innovate, the FCA does not disadvantage others. So if the FCA is able to give new firms some flexibility around the rules, this should translate into changes that all firms can benefit from. We need a level playing field.
 
“We call on the FCA to reduce this regulatory burden, and simplify its rule book, so that firms know what is expected of them and are free to innovate.”
 

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