Letter: FCA’s mission must start with the essentials

From David Pitt-Watson, Executive Fellow, London Business School Sir, The Financial Conduct Authority is currently consulting on its mission. We recommend that this process should start with the essential purposes that the finance industry plays in serving the outside world: keeping money safe; facilitating payments; risk sharing; intermediation. Typically, financial regulators are not asked to consider the broader purpose of the industry they are responsible for. This may be one reason why Britain lacks an effective system of private pension provision, where individuals can save for a predictable income in retirement. It may help explain the academic evidence that concludes that today’s finance industry is no more efficient at serving the outside world than it was 100 years ago. The mission of the FCA should be explicit in asking that it uses its powers in a way that encourages the creation of institutions and market forces that deliver to purpose. David Pitt-Watson Executive Fellow, London Business School Barbara Ridpath Director, St Paul’s Institute Anna Laycock Executive Director, Finance Innovation Lab Catherine Howarth Chief Executive, Share Action Daniel Godfrey Founder, The People’s Trust Andy Agathangelou Chair, Transparency Task Force Nick Silver Co-Founder Radix Mark Goyder CEO, Tomorrow’s Company Chris Hewett Convenor, Transforming Finance Network Madeleine Evans FinanceMatters Read original letter here.