Dear CEO
by Shoosmiths LLP
For those engaged in the financial services sector, these seven letters often pave the way to difficult decisions, reprioritisation of projects and occasionally, an awkward shuffle in the seat.
On receipt of their own Dear CEO letter from Unite the Union, I have no doubt that there has been a lot of awkward shuffling around the management tables at the FCA.
The letter to Rikhil Rathi (CEO of the FCA) was sent on February 1 and it cannot make for comfortable reading. This is particularly the case as the financial services sector grapples with macro economic challenges and focuses on the implementation of the Consumer Duty.
There are some staggering figures in the letter from Unite the Union, which should give us all cause for concern.
- 97 percent of FCA staff have been affected by the costs of living crisis (50% significantly so).
- 57.6 percent of staff are actively looking to leave the FCA.
- Over a fifth of FCA employees left in the last year.
Beyond these figures, the letter voices serious issues about the management within the FCA and conduct towards staff. These are emphasised through some worrying comments:
- Morale throughout the workforce is at a rock bottom.
- The public can no longer have confidence in the FCA’s ability to deliver in the public interest.
This should be of concern to everyone. Indeed, it is the FCA’s statutory objective to ensure that markets function well; protect consumers; ensure integrity; and promote competition.
There should be no vitriol or malice in the concerns raised by Unite the Union, but rather concern for how these objectives are fulfilled for the benefit of society.
With the challenges faced by consumers, business and those engaged in financial services, we all need an effective regulator. This requires a motivated, engaged and experienced team to deliver against all of the current challenges and continue to build confidence in the system. This is perhaps more important than ever as the Consumer Duty brings change for everyone, including the FCA.
As will all Dear CEO letters, I hope this galvanises action, focusses attention and drives change for the benefit of FCA employees, consumers, businesses and the economy as a whole.