The New City Initiative (NCI) has highlighted four areas new Financial Conduct Authority (FCA) boss Andrew Bailey should address.
Bailey, who is head of the Prudential Regulation Authority (PRA), was named chief executive of the FCA earlier today, ending a 'worldwide' search led by chancellor George Osborne dating back to last July when Martin Wheatley stood down.
NCI welcomed the appointment of Bailey and called on the City watchdog to do more to help build on the UK's leading position at the forefront of the boutique asset management industry.
'The FCA is well placed to make a positive, stabilising contribution to the business environment in which the UK’s small entrepreneurial asset management firms operate,' NCI chair Dominic Johnson (pictured) said in a statement.
'[We hope] the regulator will recognise the significant contribution these firms make to the UK and work to foster a culture in which they can flourish.'
The think tank has encouraged the FCA to look at the following four areas:
* Establish a 'small firm' team, dedicated to assisting in registration and issues affecting small firms
* Seek to reintroduce personal contacts within the FCA, thereby improving the regulator’s efficiency and productivity
* Focus on putting 'competitiveness' as a central feature of the FCA’s mandate; and
* Fight for more balanced regulation within the European Union.
Meanwhile Simon Morris, a financial services partner at law firm CMS, described Bailey's appointment as 'excellent', saying it made perfect sense.
'It [the appointment] strengthens the FCA and is an elegant way of dealing with the fact that there is no longer a role for an autonomous chief executive of the PRA,' Morris said.
'Under the FS (financial services) Bill the PRA will become a division of the Bank of England, which will be the regulator of banks and insurers. Thus two birds are killed with one stone and the FCA acquires a competent, effective and widely respected leader who understands how the industry works.'