DISCUSSION 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.