FCA’s Perimeter Report: A Refreshing Dose of Reality

Well, it seems the FCA has decided to put down the deflective shield and admit what many of us already knew: they can’t stop all the harm caused by financial rogues and chancers. In today’s Perimeter Report, the regulator took the unexpected step of holding its hands up and saying, "Hey, sometimes we just don’t have the power to act." Bravo, FCA! It’s a step in the right direction, and frankly, long overdue.

For years, criticism has been met with a cocktail of gaslighting, bureaucratic platitudes, and the occasional eye-roll-inducing "we’ve got this" bravado. Today’s report, however, strikes a different tone—one that feels more conciliatory, perhaps even a bit self-aware. Dare I say, it almost reads like an olive branch extended to its critics, including the friendly nudge from the APPG last week.

The Limits of Power

The report lays bare the FCA’s challenges in tackling the financial wild west that exists outside its regulatory perimeter. Investment scams, unregulated trading courses, crypto shenanigans—it’s a rogues’ gallery of bad actors exploiting gaps in the system. But here’s the thing: acknowledging these limits doesn’t make the FCA weak. In fact, it’s a more mature approach that might actually do wonders for its bruised reputation.

Take this gem from the report:

“We cannot stop all consumers from suffering harm. And we do not always have the power to act.”

Finally, an admission that the FCA isn’t an omnipotent financial saviour. Instead of pretending to be the superhero swooping in to save the day, they’re owning up to their kryptonite: a sprawling, fragmented remit that leaves gaps for harm to slip through.

Why This Matters

For a regulator often accused of being reactive and opaque, this moment of honesty could mark a turning point. By clearly stating what they can and can’t do, they’re inviting a more constructive dialogue with stakeholders. And let’s be real—clarity is preferable to the usual regulatory tap dance.

It’s also refreshing to see the FCA admit to trade-offs in deciding what to monitor and where to act. Prioritisation isn’t a bad thing when your plate is overflowing with crypto cowboys, social media "finfluencers," and investment scammers preying on the desperate.

The "Friendly Critic" Role

The APPG on Financial Resilience recently offered the FCA a "friendly critic" olive branch, and this report feels like a subtle nod of acceptance. Instead of brushing off constructive feedback as meddling, the FCA appears willing to listen, even if it’s through gritted teeth.

And that’s a good thing. After all, collaboration beats confrontation when it comes to protecting consumers.

A Long Way to Go

Of course, let’s not get carried away. This isn’t some overnight transformation. The FCA still has plenty to prove, especially when it comes to acting decisively where it does have power. But for now, this report is a small victory in the battle for transparency and humility.

So, here’s to hoping the FCA continues down this path—open, honest, and willing to engage. It might not have all the answers, but today’s admission is a step towards earning back trust. As for the critics, maybe cut them some slack (just a little). They’re trying, and in the world of financial regulation, that’s at least a start.