Martin Wheatley, the incoming chief executive of the Financial Conduct Authority, has revealed that the regulator will use reports on Twitter to spot companies’ illegal activities as he seeks “new ideas and new ways” of working, UK’s The Telegraph has reported. The move follows a period with huge payouts from the banks following Libor-rigging and the mis-selling of payment protection insurance and interest rate swaps.
It was also reported that “Wheatley is looking to relax capital rules for smaller banks and reduce the authorisation period to make this a reality.”
“The thing about challenger banks is they are trying to get new customers on the cheap rates being offered by incumbent rivals,” Wheatley said to The Telegraph. “But they have to win new customers on these very low loans and savings rates without having the back book of profitable customers to be able to do it. We’re saying to challengers, we will allow you to build up gradually so you don’t, in effect, have to be a massive contender to be straight in there.”
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