Opportunities from the growth of private markets
In the speech, Mr Rathi notes that private markets are growing and the FCA supports this growth as part of ensuring a range of financing options for companies, and the competitiveness of UK investment management. He flags the importance of embracing innovation to boost competitiveness, whilst understanding in detail the risks, and states that this requires greater transparency and collaboration as part of broader conversations in resetting the UK’s risk boundaries. Mr Rathi highlights the need for an ‘enabling and proportionate’ regulatory approach which embraces the role of data, to ensure that as access to private markets expands (potentially quickly), the FCA can provide confidence in the ‘underlying plumbing’ and be open about where significant risks remain. He also notes the need to harness more of the talent in the UK investment management industry and to improve financial education beyond the financial sector.
Motor finance
The speech also touches on motor finance. Following a recent ruling relating to motor finance, Mr Rathi explains that the FCA has been engaging with the industry and the Government to monitor the market, analyse the impact on industry and consumers, and identify what action is required. He states that clarity is needed around the courts’ views on this, and that in the meantime, the FCA’s focus is on ensuring that customers receive fair treatment in line with the law and that the market for motor finance continues to function well. Mr Rathi also confirms that the FCA is considering whether to expand the current pause to the 8-week deadline that motor finance firms have to respond to complaints relating to discretionary commission agreements, so that it also covers complaints relating to other types of commission in motor finance.