Adam Phillips, Consumer Panel chair, has called for the FSA and its successors to drive a change in firm culture to deliver better outcomes for people.
In delivering his speech to the FSA’s Annual General Meeting, Phillips (pictured) also outlined the Panel’s expectations for the Financial Conduct Authority which include undertaking large scale research to better understand the public’s needs for financial services.
The Panel is concerned that financial services providers are too focussed on retailing financial products and not the real needs of consumers.
“The switch to twin peaks regulation represents a once in a lifetime opportunity for change,” said Phillips.
“The FSA’s successors cannot simply proceed with business as usual. If public trust is ever to be restored in financial services then a large and visible change in behaviour is required.
“Unfortunately the behaviour of the banks has tended to focus attention more on treating the symptoms rather than the causes. It is time that firms and regulators had a greater focus on delivering better outcomes for people living in the UK.
“The regulator cannot make people or organisations behave better. But it can create an environment that rewards good behaviour. The regulator should make clear statements about its intentions, allow reasonable time for organisations to adapt and punish those who fail to meet its requirements.”