Nikhil Rathi (pictured) is the CEO of the Financial Conduct Authority
In a Treasury Select Committee hearing yesterday (19 July), Rathi and FCA chair Ashley Alder were quizzed about savings rates, access to cash and credit cards, and the incoming Consumer Duty, which is set to come into force at the end of the month.
FCA confirms investigations into Crispin Odey and Odey Asset Management
But when asked about the work the regulator is doing in the area of non-financial misconduct in the wake of the Crispin Odey scandal, Rathi said since the investigation into the fund manager is live, there limits as to what he could say.
He did say, however, the FCA «really commended the bravery of the women who have come forward with their experiences». Rathi explained in these kinds of cases, victims should turn to the police first and to the FCA's whistleblower lines, as it is not the «primary authority» to act on such types of misconduct.
Despite this, he announced the FCA will «further clarify» its guidance in cases of non-financial misconduct in a paper on diversity and inclusion jointly with the Bank of England, which is set to come out in September.
The guidance will refer to the FCA's three main objectives: consumer protection, market integrity and effective competition.
Rathi explained: «Any case we take, we have to prove that the misconduct in question impairs those objectives.»
He highlighted the FCA has been one of the leading regulators stating that non-financial misconduct is relevant to conduct in financial services.
As a result, the FCA has so far taken seven cases, he added, but only after a criminal conviction or following action from a designated professional body, which then resulted in prohibition orders.
Rathi
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