Yudu - Journey to the FCA

ACCOUNTABILITY, TRANSPARENCYAND MEASURING OUR SUCCESS

Accountability

Our Board

Our Board will be made up of executive and non-executive members. John Griffith-Jones has been appointed as chairman. The Board’s role will be to challenge our executive, to hold them to account and to set our overall direction. It will ensure that we achieve value for money, remain cost-effective and oversee future senior executive appointments.

Panels

We are required to consult practitioners and consumers on the extent to which our practices and policies are consistent with our general duties. One of the ways we will fulfil this requirement is through our relationship with four independent panels that will represent the interests of their constituencies to us:

the Financial Services Practitioner Panel

the Financial Services Consumer Panel

the Markets Practitioner Panel

the Smaller Businesses Practitioner Panel

We will consider the representations made to us by the panels and, from time to time, publish our responses.

Complaints, freedom of information, and audits

We will have a formal process for dealing with complaints about the FCA. This will be part of a single complaints scheme between the FCA, PRA and Bank of England, and will continue to be subject to the Freedom of Information Act.

There will be a new requirement for the National Audit Office to be our statutory

auditor, with the power to carry out value-for-money reviews. The Treasury will also be able to carry out economy, efficiency and effectiveness reviews.

Investigations into regulatory failure

As part of our ongoing accountability, we must carry out an investigation and subsequently report to the Treasury if there has been a significant regulatory failure.

This will be where it appears to us that two conditions have been met:

1. a significant failure to either secure an appropriate degree of protection for consumers; or a failure that had or could have had a significant adverse effect on the integrity of the UK financial system or on effective competition in the interests of consumers; and

2.the events occurred, or were made worse, because of a serious failure on our part.

The Treasury may require us to carry out an investigation and report to them where they consider that the conditions have been met, or if they think that an investigation is in the public interest.

We will issue a statement of policy on investigations. This will cover what we will take into account in deciding whether the above conditions are met.

Transparency

The new ways of working that we have described in this document will take place with an appropriate level of transparency. The firms we regulate have a huge impact on people’s daily lives and our economy, so we know that, as a public body, our duty is to do what we do in a way that is as open and accountable as possible.

We will be clear in communicating our thinking and the way we work, and will be open to scrutiny from consumers, firms and Parliament, and more accountable on how we manage our costs.

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Foreword by

John Griffith-Jones Introduction by

Martin Wheatley: Our vision for the Financial Conduct Authority

Chapter 1:

The creation of the FCA: Spotlight on some of our new powers

Chapter 2: Protecting

the perimeter Chapter 3:

Ensuring firms continue to meet our standards

Chapter 4:

Taking action against firms that do not meet our standards

Chapter 5: Building our

understanding of the markets

Chapter 6:

Maintaining effective relationships

Chapter 7:

Accountability, transparency and measuring our success

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Annex A:

Specific questions for consultation

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