Financial Ombudsman Service (FOS) chief executive Natalie Ceeney has welcomed the ‘pragmatic’ approach of the Financial Conduct Authority, saying she hoped it had taken on lessons learned from light-touch regulation that ‘exacerbated’ mis-selling scandals like payment protection insurance (PPI).
In the April/May edition of Ombudsman news, Ceeney said the FSA had failed to act quickly and decisively when the problem of PPI mis-selling came to light.
She said the FCA’s pragmatic approach would better fit with the Omudsman's approach as it ‘makes decisions by considering what is fair and reasonable in the individual circumstances of each case’.
‘Ultimately, regulation will be increasingly effective if it takes account of how things are playing out in real life,' she said.
‘So a more pragmatic, commonsense approach can only be good news – and we look forward to working closely with the FCA as it implements its new approach to regulation.’