FCA urges “do the right thing”

Therese Chambers has spoken on the importance of people in the financial services sector doing the right thing on a day to day basis, and how well run firms will achieve better outcomes for their clients. She noted some examples of behaviour that FCA has particularly welcomed, including the actions of Quilter in putting in place a redress scheme in relation to unsuitable advice given by Lighthouse Advisory Services in relation to BSPS transfers, even though that advice was given before Quilter acquired Lighthouse. This scheme, and Quilter’s cooperation, meant that FCA did not impose any financial penalty.

She went on to say that enforcement is about paying penalties where this is warranted – but that early detection is the most effective tool. She discussed current open actions, including 71 investigations into suspected insider dealing, and then discussed the proposed redress deal in relation to the Woodford Equity Income Fund. She said the proposed scheme offers investors the quickest and best chance to get a better outcome than they might get by other means.

She considered also how FCA will investigate hard inappropriate activity within authorised firms, taking WealthTek as an extreme recent example.