Confidence in the Financial Conduct Authority has increased, with almost eight in 10 regulated firms now highly satisfied with their relationship with the regulator.

The latest FCA and Practitioner Panel annual survey found 79% of firms reported high levels of satisfaction, up from 74% last year.

The proportion rating the FCA as a highly effective regulator also climbed seven percentage points from 69% to 76%, while 75% reported high levels of trust.

Firms were particularly confident in the regulator’s work to protect consumers, at 87%, while 85% expressed confidence in its work to ensure markets function effectively and maintain the integrity of the UK financial system.

CONSUMER DUTY

Understanding of the Consumer Duty also remains high, with 88% of firms saying they understand what the FCA expects when it comes to supporting consumers and embedding the Duty.

The regulator said there had also been a 27 percentage point increase in understanding of its Secondary International Competitiveness and Growth Objective and a 25 percentage point rise in confidence in its ability to deliver against it.

However, firms continue to identify regulatory burden as an area where further progress is required.

The FCA said it is removing outdated or duplicated data returns for 90% of firms and estimates changes already introduced will save businesses around £16m a year.

‘MORE TO DO’

Nikhil Rathi (main picture), chief executive of the FCA, said: “A year into our strategy it’s encouraging to see growing confidence across many areas of our work.

“We know there is more to do. For example, while we can’t do our job without the data firms provide, we should continue to simplify requests and make them easier to manage.”

Matt Hammerstein, chair of the FCA Practitioner Panel, added: “This year’s survey results indicate firms continue to have broadly positive views of the FCA, including strong understanding of expectations under the Consumer Duty and significant growth in confidence in the FCA’s ability to deliver on its secondary objectives focused on growth and competitiveness.

“The Panel is encouraging the FCA to be clearer about the outcomes it expects its priorities to produce, and more vocal about the progress it is making against these, to strengthen confidence in the UK as a leading global financial centre and attractive place to invest.”

The FCA said it estimates its work during the first year of its current strategy delivered £5.6bn of benefits to consumers and the wider economy.