The Financial Conduct Authority has been criticised for being slow in authorising crypto firms as it grapples with an internal revamp and pay structure that has disillusioned some staff. The ministry and regulators face pressure to make financial rules more flexible to keep London globally competitive after Britain’s departure from the European Union.
In the meantime, Britain’s finance ministry flagged several reforms and defended regulators from
criticism they are too slow to license firms, saying flawed applicants must not get through. Financial services minister John Glen said he has “very high regard” for the leadership at the FCA and its counterpart at the Bank of England, and that some people criticised regulators just because they don’t get what they want. He said he was aware of frustration over licensing waiting times and has told FCA CEO Nikhil Rathi that the complexity of new types of financial firms like crypto means that some thought needs to be given to being more responsive.
“A change in rules could allow for the growth in Britain of “captives” or licensed in-house insurers set up by corporates looking to cut costs through self-insurance. It’s ripe for further work to be done. I hope that we will see that evolution in the way insurance and reinsurance is offered to big corporates,” Glen said.
