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The British Financial Guardian will encourage retail investors to take a higher risk with their savings to address the challenge of the elderly as a key part of the new five -year strategy that he will present this week.
Ashley Alder, chair Financial behavior authorityHe told the Financial Times that his new plan was built to help consumers to achieve a higher return than their savings and increase the confidence in the financial markets, clutching fraud.
“One thing we focused on a lot in the construction of a strategy is a demographic challenge … Insurance for a later life [is] A large part of it, “Alder said in an interview for a few days before launching a new strategy on Tuesday.
Alder also threw his support behind FCA’s executive director Nikhil Rathi, saying “he is the right person who moves us forward.” Rathi’s five -year term ends in September and speculates if he can leave.
FCA, which regulates financial services companies, protects consumers and stimulates competition, under pressure from the Government of Sir Keira Starmer on Facilitate the burden of bureaucracy and encourage more risks.
Alder said that the FCA would support the government urge to make regulators more aimed at growing less, target investigations, using artificial intelligence to spot injustice and be more seduced in the data required by financial companies.
It is expected that the aging of the population in the UK – the number of pension people by 2032 will increase by 14 percent – puts the focus on “the ability of people to have a decent revenue in later life,” Alder said.
In order to deal with this concern, the FCA would focus on “risk reclamation”, which Alder described as “the risk not to decide, for example, participation in or approach to financial products or services that can lead to a higher long -term return.”
As part of this pressure, the government is already considering adapting the rules of Money without taxes of Isa Savings accounts to encourage people to transfer more money to larger investments in refund, such as shares and bonds.
The FCA also suggested allowing pension owners to get “targeted support” to companies to make generic proposals within the framework of an easier regulatory frame. He hopes that this will fulfill the gap in financial advice for people who are not rich.
Alder pushed himself against the concern that his growth approach would mean less protection for humans. “It’s not an exchange, or/or, consumer protection or growth,” he said. “We want to supply consumers of retail tools to do this thing that is an informed risk take over.”
The new regulator strategy will include “great emphasis on financial crime and fraud in the sector,” Alder said, adding that it is a key element in strengthening consumer trust in the financial markets and the regulator itself.
“If you have been able to increase confidence in the system and therefore increase the level of participation in products and services, you would obviously then end up with a higher savings level that is converted to investment through the market,” he said.
FCA has opened smaller investigations over the last few years and closed many in its existing pipeline in an effort to focus its resources on “cases that represent the biggest risk of damage,” Alder said. Because he is more select, he expected to retain the number of work actions stable or even increase them.
Another shift in the FCA strategy is to prepare for the erosion of global coordination in financial regulation, derived from protectionism and trade tensions. “We have clearly experienced a shift from globalization … The word protectionism is high on the agenda,” he said.
In response, he will probably focus on “engaging with a smaller group of like-minded jurisdiction,” said Alder, who was the head of the Hong Kong market guard and chaired the international organization of the Securities Commission before joining the FCA 2023.
