FCA asks 'have we been too demanding in hindsight?'
The Financial Conduct Authority is seeking to find out if it has applied its rules too demandingly in hindsight.
The regulator is looking for details of instances when firms believe rules have been applied retrospectively.
Officials are looking into the matter as it continues moves to assess if firms are shying away from innovation, which could benefit consumers because they are afraid of flouting regulations.
It is the latest measure from the City watchdog to work on the perceived 'expectations gap' between regulators and industry – how firms understand what is required of them compared to the FCA's own expectations.
It is asking companies to provide examples of when rules have been applied retrospectively, possibly with the FCA's predecessor, the FSA.
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On its website the FCA said: "We remain interested to hear from firms about times when they believe the FCA (or the FSA) applied its rules retrospectively.
"That is, applied a more demanding standard or interpretation of the rules after the event with the benefit of hindsight."
The FCA recently published a report on the perceived 'expectations gap' – looking at how it might affect the quality of products and services that consumers receive, or if it may inhibit "consumer-friendly innovation".
Officials want to hear from firms with specific examples of rules applied retrospectively so they can fully analyse evidence.
The regulator said it was an important part of continuing work to engage and communicate with the industry.
The call for evidence about retrospective rule application is also linked to the regulator's Project Innovate – an initiative aimed at helping both start-ups and established businesses bring innovative ideas to financial services markets.
To contribute to the FCA's research use the online form on its website or send the comments by post before October 10.
Send comments to:
Bob Ferguson
Policy Risk and Research Division
Financial Conduct Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Telephone: 020 7066 0334
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.