Unlock Digent Editor FREE
Roula Khalaf, editor of FT, chooses her favorite stories this weekly newsletter.
The British financial guard dog will encourage retail investors to risk more risk with savings to deal with the challenge of the aging population as a key part of the new five -year strategy that this week will introduce.
Ashley Alder, chairman Financial behaviorThe Financial Times said that his new plan is built to help consumers in performing their savings and increasing confidence in financial markets by connecting with fraud.
“One thing we focused on a lot in creating a strategy is a demographic challenge… Providing for a later life [is] A large part of it, ”Alder said in an interview a few days before the start of a new strategy on Tuesday.
Alder also threw his support for FCA CEO Nikhil Rathi and said, “He is the right person who will move us forward”. Rathi's five -year period ends in September, and there has been speculation about whether he could leave.
FCA, which regulates financial services, protects consumers and stimulates competition, has come under pressure from the government of Sir Keir Starmer at Mix the burden of bureaucracy and encourage more risks.
Alder said the FCA would support the government's efforts to focus more on the growth of the opening of a less targeted investigation by artificial intelligence to find unlawful conduct and more selective in the data required by financial companies.
The aging population in the UK – the number of people of retirement age by 2032 is expected to increase by 14 percent – gives attention to “people's ability to have a decent income in later life,” Alder said.
In order to resolve this concern, FCA would focus on the “risk of risk” that Alder described as “the risk of not deciding to participate or approach financial products or services that can lead to greater long -term return”.
As part of this pressure, the government is already considering adjusting the rules Cash isa without tax Savings accounts that encourage people to move more money to invest in higher return, such as stocks and bonds.
The FCA also proposed that pensions to allow 'targeted support' from companies to submit general proposals within a lighter regulatory framework. He hopes to fill in a gap in financial advice for people who are not rich.
Alder pushed back against fears that his approach for growth would mean less protection for people. “It is not a stock exchange or either/or consumer protection or growth,” he said. “We want to provide retail consumers with much better tools to be informed of risking.”
The new strategy of the regulatory body will include “great emphasis on financial crime and fraud throughout the industry,” said Alder, adding that this was a key element for increasing consumers' trust in financial markets and the regulatory body itself.
“If you were able to increase confidence in the system and therefore increase the level of participation in products and services, you would apparently end up with a higher level of savings into investment through markets,” he said.
The FCA has been opening less investigations over the past few years and has concluded much in its existing pipeline in an effort to focus its resources on “cases that pose the greatest risk of damage”, Alder said. By being more selective, he expected that this would maintain or even increase the number of coercive measures.
Another shift in the FCA strategy is to prepare for the erosion of global coordination in financial regulation, stemming from protectionism and the tension of trade. “It is obvious that we have experienced a shift from globalization … Protectionism of words is a high agenda,” he said.
In response, this probably focused on “involvement in a smaller group of similarly -minded jurisdictions,” said Alder, who was the head of the monitored dog in Hong Kong and chaired the international organization of the securities commission before entering FCA.
