Regulator Handbook' title='Regulator Handbook' />Challenges for the regulator consumer credit, long term savings and an ageing population. Speaker Andrew Bailey, Chief Executive. Event City Banquet, Mansion House, London. Delivered 4 October 2. Note this is the speech as drafted and may differ from the delivered version. Highlights. Andrews speech sets out some of the challenges for the FCA as a financial conduct regulator by focusing on three big areas consumer credit long term savings and retirement provision and other impacts of an ageing population. The FCA alone cannot create an appropriate system for the sustainable supply of credit but has already started discussions with other stakeholders to see what may be possible. The FCA will publish its pension strategy later this year setting out for the first time the FCAs assessment of the major regulatory issues in the sector. Lord Mayor, it is a great pleasure to be at Mansion House once more. You are generous to say that you look forward to an evening of regulators speaking. Regulator Handbook' title='Regulator Handbook' />And who doesnt I want to start by thanking you for all that you have done to support the City in your term of office. Amongst your hectic schedule, you fitted in a visit to the FCA in Tower Hamlets, for which we are very grateful. Download 3D Home Architect Design Suite Deluxe 8 Torrent here. This is the last year in which I can say that, because next year we will be moving to Newham, to the Olympic Park to be precise. We will be next door to the Olympic Pool, so miscreants should be aware that enforcement will take on a new meaning with the penalty of walking the plank, also known as the high diving board. I am asked from time to time to explain the difference between the FCA and the PRA. From next year it will be easy, just look at our neighbours. Lets start with the PRA, in the quiet environs of Moorgate. The neighbours include the Institute of Chartered Accountants of England and Wales. In my time at the PRA, the CEO of the Institute, Michael Izza, would come round for tea, with a few friends. We would discuss burning issues of the day IFRS9, IFRS1. Solvency II and accounting. Passions would run high. Now lets move to the FCA from next year. Our neighbours will include West Ham United. My research tells me that the Chief Executive will also bring some friends round to see us, on average 5. Whether we will discuss MIFID II remains to be seen. Just over 9. 0 years ago John Maynard Keynes wrote an essay on The End of Laissez Faire. In it he commented that To suggest social action for the public good to the City of London is like discussing the origin of species with a bishop sixty years ago. The first reaction is not intellectual, but moral. An orthodoxy is in question, and the more persuasive the arguments the graver the offence. Keynes was writing about a past era, when the economy functioned more in the absence of public policy institutions. That era was brought to an end by the First World War. As Keynes reflected, from then on public policy came more into prominence. Today we do discuss public policy in the City of London, as we should. This evening I want to focus on some of the big public policy issues that we at the FCA face as a financial conduct regulator. Parliament has given the FCA an overarching objective to ensure that markets function well. Sitting behind that are three operational objectives ensuring market integrityappropriate consumer protectionpromoting competition in the interests of consumers. I want next to set out a number of big developments which provide important backdrop to the challenges we face. The first big development has been slower economic growth in major economies since the financial crisis, including slower productivity growth. The response has included accommodative monetary policy and a pronounced fall in real interest rates. This has supported activity, albeit with lower growth rates. It has also reduced debt servicing costs but raised the bar in terms of the savings rate required to produce a given return at much lower real interest rates. Put simply, the cost of debt has gone down, creating an incentive to borrow, while the cost of accumulating assets to support notably retirement income has gone up. Meanwhile, for some, the growth of the so called gig economy has led to more unpredictable income flows, and a demand to borrow in order to smooth the pattern of income. Also we have continued, at least until recently, to see a substantial increase in longevity, part of the ageing of the population, which puts pressure on traditional models of pension saving. Alongside all of this has been a marked acceleration in the pace of technological innovation affecting the provision of financial services which has fundamentally changed service delivery and access to finance, but also opened up generational and other divides in the availability of benefits of this innovation. These trends and developments are fundamental and inevitable in the sense that we cant stop them and nor should we. It feels a little bit like the revisionist view of King Canute, which is that he didnt think he could stop the tide coming in rather, he sought to demonstrate that for all his authority it would happen in his case demonstrating the limits of kingship. We have much more modest ambition, but these are the powerful forces that are operating around us. I want to set out some of the challenges for the FCA as financial conduct regulator by focusing on three big areas consumer credit long term savings and retirement provision and other impacts of an ageing population. Consumer Credit Starting with consumer credit, the Bank of Englands Financial Policy Committee in our latest assessment has highlighted that the rapid growth of this area of lending stands out against a generally benign overall credit environment. While it is not a material risk to economic growth as a whole, compared to mortgage lending defaults are more likely in a severe economic downturn, posing risks to lenders. There are also risks to consumers, which is where the FCA comes in. Consumer credit is not a monolith, but rather a series of markets. The total stock of consumer credit in the UK is around 2. The rate of growth has come off a bit of late but remains just under 1. Of the 2. 00bn, about 6. Overdraft credit by the main high street banks is around 7bn. The rest is mostly unsecured personal loans. We are not at all complacent about the overall consumer credit situation, but I dont regard, for instance, the shift to PCP based lending as per se bad. It seems to me to recognise the nature of a car as an asset, that is, consumers are comfortable renting rather than owning the car. That said, there are issues that we seek to understand on the terms of such lending and how well they are understood by consumers, so we are not complacent on such terms. Consumer credit is not a monolith, but rather a series of markets. Turning to high cost credit, and the range of lending products for those who are less well off and with worse credit scores, I would stress that credit has a role to play, for instance in smoothing more erratic incomes. Nonetheless we are concerned about the cost and terms of such credit and the propensity for over indebtedness. And these things are linked. Some of the terms encourage over indebtedness with little or no incentive to pay down debts. A good example of this is credit cards. They are used by a large number of people as a means of short term borrowing to enable payments for goods and services. Links to sites providing health and safety information for the nuclear power industry. SRA HANDBOOK GLOSSARY 2012 Part 1 Introduction and Preamble Introduction. This section of the Handbook contains the SRA Handbook Glossary. The SRA Handbook Glossary. For the majority, our work has found that competition operates fairly well.