The Financial Conduct Authority (FCA) has pledged that being given a competitiveness objective will not weaken its oversight of the industry.
The regulator also agreed with the Treasury Select Committee of MPs that it must do better on tackling fraud and said it “will improve”.
Speaking in Parliament, FCA executive director for consumers and competition Sheldon Mills highlighted that the regulator would have the Senior Managers regime and incoming Consumer Duty to maintain its enforcement rules.
When asked if an objective to ensure the competitiveness of the financial services sector would lead to more lax enforcement policies, Mills said: “No. We will still have a significant enforcement division that will continue to do a quite lot of significant work.”
Mills noted that financial crime and fraud was a “really important part of our enforcement” adding: “you’ll be seeing a bigger focus from us on that”.
However, in a feisty exchange with Labour MP for Wallasey Dame Angela Eagle, Mills admitted the FCA was “at a starting point” in tackling fraud.
“You’re at a very low starting point as fraud has exploded, I’m astonished you used that as an example,” Dame Eagle replied.
Mills highlighted that the regulator had taken action against NatWest, which saw it fined £265m in December as part of the FCA’s first criminal prosecution under Money Laundering Regulations and against a bank.
He added: “We take the criticism and we will improve but I’m mentioning it because it is a clear policy of ours to improve in the area of fraud.
“Your question was whether competitiveness would impact that, I’m saying that it won’t.”