How an unchecked FCA could erode the value of your firm

What’s anything worth?

Business people know that the value of anything is in what it can do for the buyer….

Hence something is worth what a buyer will pay for it.

When the FCA refuse change of controls they prevent free competition and by doing so they actually erode the value of your business.

This didn’t concern me (or you) until some new players and overseas money tried to enter the market.

Of course, the idea is that the FCA authorities only step in when something is wrong.

But right or wrong is a viewpoint; most people didn’t expect Russian authorities to invade the Ukraine just because they want to join Europe, but the Russian authority think they are in the right.

Forced to sit exams when it turns out veterans were actually an asset, forced to bear the burden of having no long stop on claims, forced to give away over a quarter of turnover in regulation costs and now you could potentially be forced to take a below market price for your firm.

Thing is though, being an “authority” is not a badge or a title, authority is actually something that is given to someone by someone else.

The FCA should consider that.

In fact they should also consider that just like a stick in the hands of a bullying seven year old, “authority” can be removed swiftly.