Rallying in the rain
16 Oct 2024
On 26 September, Transparency Task Force led a small rally outside the offices of the Financial Conduct Authority demanding reforms in the name of greater transparency and regulatory oversight
Image: Asset Servicing Times
The rain pummels the ground of Queen Elizabeth Olympic Park to leave the small water features a sight akin to a broken drain amid a torrential downpour. Dark clouds hang over the Financial Conduct Authority’s (FCA) building in Stratford as the City regulator undergoes their annual public meeting.
Outside the offices, a few hooded, umbrella-covered people are milling around, their feet splashing against the small flood that has gathered under their feet. Office workers take no notice of the small crowd beginning to swell and disappear into the FCA building through the ever-revolving door clutching coffees or lunches from the Itsu next door.
Transparency Task Force (TTF) organised ‘The Rally for Better Financial Regulation’ to begin from 12:30. Fifteen minutes pass and it appears the rain may have gotten the better of the rally, mind the few determined individuals still standing around looking for a semblance of the purpose they travelled to the east side of London for.
Those gathering are united by their concerns about a lack of proactivity, transparency and accountability within the FCA, believing themselves victims of the authority’s failings. They share stories of what they lost — both financially and in trust in the authority. Just as the few groups begin to merge, the clouds break and the sodden square is filled with brief sunlight. Almost as the weather was providing a cue, the members of the TTF emerge from around the corner in a flurry of placards and a giant speaker.
Andy Agathangelou, founder of TTF, grabs a microphone and heads straight to the FCA revolving door — the office workers no longer able to ignore the bright pink signs and determined voice booming from the loudspeaker.
The signs read,:
“WANTED! A FINANCIAL CONDUCT AUTHORITY…
“...THAT DOESN’T RISK ANOTHER FINANCIAL CRISIS THROUGH DEREGULATION, AS PART OF THE “COMPETITIVENESS AGENDA.”
“…THAT DOESN’T “MARK ITS OWN HOMEWORK” BY APPOINTING THE PEOPLE THAT REVIEW ITS WORK.”
“…THAT IS FIT FOR PURPOSE, HONEST, TRANSPARENT AND ACCOUNTABLE”
Before anyone has a chance to finish reading the litany of demands emblazoned on the signs, Agathangelou booms: “Hello everybody at the Financial Conduct Authority, whether you are walking in, or walking out.”
The onlookers thrown from the regulator’s revolving door walk past, confused but undeterred.
The motivation
“I am here to pass on a message, a very simple message, a very simple solution, a very simple equation, that is: For better financial regulation, we need a better financial regulator. It is as simple as that,” Jasthi Alom begins his speech.
The former FCA employee is challenging the regulator in the court and follows Agathangelou’s energetic introduction.
The message for TTF is clear.
They believe the financial regulator has not done enough to protect consumers and, in turn, not done enough to protect the financial services industry.
Prior to the rally, Alom expressed his desire for regulatory reform to be completely overhauled. He said: “This Rally is crucial because the equation is simple: better regulation requires a better regulator. Systemic reform of the FCA is urgently needed.
“Without it, the FCA risks becoming the next major public catastrophe — a crisis they are already teetering on — and much like the Post Office scandal, it will lead to devastating consequences, including financial losses, ruined lives, and even suicides.”
TTF wants to address what they describe as a “trust deficit” in the financial sector, with the group stating that making “the industry and its regulator more accountable for their actions” is the key driver of this rally.
In the statement, Agathangelou said: “Just this week, the FCA admitted its chair, Ashley Alder, failed to keep confidential the names of two of its employees who blew the whistle — but the investigation, undertaken by one of the organisation’s own directors, was consequence-free for Mr Alder, an experienced lawyer and regulator who should have known better.
The FCA has a habit of marking its own homework.
“And at tomorrow’s annual public meeting, we expect the FCA’s senior team to deflect critical questions with answers that are, at best, incomplete and at worst misleading. We’ve asked that it be reinstated as a hybrid event so people have the option of attending in person, which would enable them to challenge unsatisfactory responses.”
The meeting remained exclusively online and, as closing remarks were made, TTF rallied outside their offices.
The message
“The financial industry in the UK accounts for approximately 8.2 per cent of gross domestic product,” Agathangelou explains. “It is a massively important part of our economy. In some ways, it is the jewel in the crown of UK PLC.”
Despite being its so-called jewel in the crown, Agathangelou is adamant there is not adequate regulatory oversight and it is creating a huge problem for the industry.
“There is a huge trust deficit,” he says. “Only about 11 per cent of people trust the financial services industry in any significant way. Only about 11 per cent of people, according to the FCA’s own research, rated highly from a trustworthiness point of view.”
The public’s distrust in the industry impacts the entire ecosystem.
Agathangelou believes this has meant “the market and consumers, both in the UK and overseas, are hesitating to make use of the services and the products that we offer.”
The TTF founder also wants to put pressure on the new government.
He is impassioned as he says into the microphone: “This new government is very committed to a growth agenda; it wants, perhaps it needs, growth to occur. How can true potential growth of the financial sector happen if people don’t trust it?”
“Reform!” Shouts Sue Flood, the photographer and filmmaker who now volunteers as head of fundraising strategy and is member of TTF’s Advisory Group, in defiance of the rain and the headquarters she faces.
Agathangelou appreciates the supportive heckle before adding: “Unless there is reform, [the regulator] won’t be trusted, it can’t be trusted, it would be irrational for people to trust it if week in week out, month in month out, year in year out, there is one scandal after another, after another.”
The Rally for Better Financial Regulation continued to battle the weather and the financial regulator in the dreary conditions.
Yet, their quest for regulatory overhaul is not a simple one.
The small crowd gathered outside the tall glass building of the regulator were relentless in their cries but will keep searching to build momentum to right what they feel are deep, systemic wrongs.
Reflections
A few weeks after the dust has settled and the puddles have evaporated, Agathangelou is pleased with how the rally went and “it was definitely a good move to run it just after the FCA’s Annual Public Meeting.”
The impact of the rally was made extra pertinent because “we were able to talk directly about things senior FCA officials said that just don’t stand up to any scrutiny.”
Agathangelou explains: “We’re definitely going to be doing a similar rally next year, and so long as the weather is decent I’m sure we’ll have a great deal of support from stakeholders that have been harmed by one form of regulatory failure or another.”
He adds that those stakeholders harmed includes “the vast majority of the good actors in the industry including the many firms doing good, compliant, ethical and transparent business in the asset servicing space; a sector I know a little bit about through the job I did many moons ago when I was head of Strategic Relationships at Close Brothers Asset Management.”
Looking forward, Agathangelou wishes for greater collaboration with the Asset Servicing Industry. “I would actively encourage asset servicing firms to seek reform of the sector by encouraging the FCA to either replace or reform the Consumer Duty, and introduce a proper Duty of Care with a proper Right to Action,” he says.
Agathangelou explains that this would help “alleviate a huge amount of clunky, burdensome red tape and high-friction bureaucratic regulation for all the good actors in the industry, whilst simultaneously driving up consumer protections; a true win, win.
“I guess the only losers would be firms that don’t treat their clients properly.”
The FCA declined to comment
Outside the offices, a few hooded, umbrella-covered people are milling around, their feet splashing against the small flood that has gathered under their feet. Office workers take no notice of the small crowd beginning to swell and disappear into the FCA building through the ever-revolving door clutching coffees or lunches from the Itsu next door.
Transparency Task Force (TTF) organised ‘The Rally for Better Financial Regulation’ to begin from 12:30. Fifteen minutes pass and it appears the rain may have gotten the better of the rally, mind the few determined individuals still standing around looking for a semblance of the purpose they travelled to the east side of London for.
Those gathering are united by their concerns about a lack of proactivity, transparency and accountability within the FCA, believing themselves victims of the authority’s failings. They share stories of what they lost — both financially and in trust in the authority. Just as the few groups begin to merge, the clouds break and the sodden square is filled with brief sunlight. Almost as the weather was providing a cue, the members of the TTF emerge from around the corner in a flurry of placards and a giant speaker.
Andy Agathangelou, founder of TTF, grabs a microphone and heads straight to the FCA revolving door — the office workers no longer able to ignore the bright pink signs and determined voice booming from the loudspeaker.
The signs read,:
“WANTED! A FINANCIAL CONDUCT AUTHORITY…
“...THAT DOESN’T RISK ANOTHER FINANCIAL CRISIS THROUGH DEREGULATION, AS PART OF THE “COMPETITIVENESS AGENDA.”
“…THAT DOESN’T “MARK ITS OWN HOMEWORK” BY APPOINTING THE PEOPLE THAT REVIEW ITS WORK.”
“…THAT IS FIT FOR PURPOSE, HONEST, TRANSPARENT AND ACCOUNTABLE”
Before anyone has a chance to finish reading the litany of demands emblazoned on the signs, Agathangelou booms: “Hello everybody at the Financial Conduct Authority, whether you are walking in, or walking out.”
The onlookers thrown from the regulator’s revolving door walk past, confused but undeterred.
The motivation
“I am here to pass on a message, a very simple message, a very simple solution, a very simple equation, that is: For better financial regulation, we need a better financial regulator. It is as simple as that,” Jasthi Alom begins his speech.
The former FCA employee is challenging the regulator in the court and follows Agathangelou’s energetic introduction.
The message for TTF is clear.
They believe the financial regulator has not done enough to protect consumers and, in turn, not done enough to protect the financial services industry.
Prior to the rally, Alom expressed his desire for regulatory reform to be completely overhauled. He said: “This Rally is crucial because the equation is simple: better regulation requires a better regulator. Systemic reform of the FCA is urgently needed.
“Without it, the FCA risks becoming the next major public catastrophe — a crisis they are already teetering on — and much like the Post Office scandal, it will lead to devastating consequences, including financial losses, ruined lives, and even suicides.”
TTF wants to address what they describe as a “trust deficit” in the financial sector, with the group stating that making “the industry and its regulator more accountable for their actions” is the key driver of this rally.
In the statement, Agathangelou said: “Just this week, the FCA admitted its chair, Ashley Alder, failed to keep confidential the names of two of its employees who blew the whistle — but the investigation, undertaken by one of the organisation’s own directors, was consequence-free for Mr Alder, an experienced lawyer and regulator who should have known better.
The FCA has a habit of marking its own homework.
“And at tomorrow’s annual public meeting, we expect the FCA’s senior team to deflect critical questions with answers that are, at best, incomplete and at worst misleading. We’ve asked that it be reinstated as a hybrid event so people have the option of attending in person, which would enable them to challenge unsatisfactory responses.”
The meeting remained exclusively online and, as closing remarks were made, TTF rallied outside their offices.
The message
“The financial industry in the UK accounts for approximately 8.2 per cent of gross domestic product,” Agathangelou explains. “It is a massively important part of our economy. In some ways, it is the jewel in the crown of UK PLC.”
Despite being its so-called jewel in the crown, Agathangelou is adamant there is not adequate regulatory oversight and it is creating a huge problem for the industry.
“There is a huge trust deficit,” he says. “Only about 11 per cent of people trust the financial services industry in any significant way. Only about 11 per cent of people, according to the FCA’s own research, rated highly from a trustworthiness point of view.”
The public’s distrust in the industry impacts the entire ecosystem.
Agathangelou believes this has meant “the market and consumers, both in the UK and overseas, are hesitating to make use of the services and the products that we offer.”
The TTF founder also wants to put pressure on the new government.
He is impassioned as he says into the microphone: “This new government is very committed to a growth agenda; it wants, perhaps it needs, growth to occur. How can true potential growth of the financial sector happen if people don’t trust it?”
“Reform!” Shouts Sue Flood, the photographer and filmmaker who now volunteers as head of fundraising strategy and is member of TTF’s Advisory Group, in defiance of the rain and the headquarters she faces.
Agathangelou appreciates the supportive heckle before adding: “Unless there is reform, [the regulator] won’t be trusted, it can’t be trusted, it would be irrational for people to trust it if week in week out, month in month out, year in year out, there is one scandal after another, after another.”
The Rally for Better Financial Regulation continued to battle the weather and the financial regulator in the dreary conditions.
Yet, their quest for regulatory overhaul is not a simple one.
The small crowd gathered outside the tall glass building of the regulator were relentless in their cries but will keep searching to build momentum to right what they feel are deep, systemic wrongs.
Reflections
A few weeks after the dust has settled and the puddles have evaporated, Agathangelou is pleased with how the rally went and “it was definitely a good move to run it just after the FCA’s Annual Public Meeting.”
The impact of the rally was made extra pertinent because “we were able to talk directly about things senior FCA officials said that just don’t stand up to any scrutiny.”
Agathangelou explains: “We’re definitely going to be doing a similar rally next year, and so long as the weather is decent I’m sure we’ll have a great deal of support from stakeholders that have been harmed by one form of regulatory failure or another.”
He adds that those stakeholders harmed includes “the vast majority of the good actors in the industry including the many firms doing good, compliant, ethical and transparent business in the asset servicing space; a sector I know a little bit about through the job I did many moons ago when I was head of Strategic Relationships at Close Brothers Asset Management.”
Looking forward, Agathangelou wishes for greater collaboration with the Asset Servicing Industry. “I would actively encourage asset servicing firms to seek reform of the sector by encouraging the FCA to either replace or reform the Consumer Duty, and introduce a proper Duty of Care with a proper Right to Action,” he says.
Agathangelou explains that this would help “alleviate a huge amount of clunky, burdensome red tape and high-friction bureaucratic regulation for all the good actors in the industry, whilst simultaneously driving up consumer protections; a true win, win.
“I guess the only losers would be firms that don’t treat their clients properly.”
The FCA declined to comment
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