City of London minister Andrew Griffith has expressed concerns over the Financial Conduct Authority’s (FCA) Consumer Duty rules, challenging the regulator’s stance.
According to a report by the Financial Times, Griffith was said to be ‘scathing’ during a closed-door dinner with senior industry figures, strongly criticising the new demands placed on firms.
He reminded the FCA of the secondary objective in the financial services bill for watchdogs to promote economic growth and competitiveness, while maintaining regulatory standards and financial stability.
Meanwhile, colleagues told the newspaper Griffith is concerned consumer duty will impose more regulatory constraints on the sector at a time where the treasury is seeking to relax EU rules following Brexit.
Under the regulation, financial services firms will be required to prove they have acted in their customers’ best interests. It will take effect in July.
Financial services bosses have complained about the added red-tape the incoming rules may cause, while warning it could lead to opportunistic claims from customers that have not received their desired outcome.