First Report - Future of financial services regulation
Select Committee
Treasury Committee
HC 141
16 June 2022
Recommendations
5 results
8
Accepted
Para 72
We recommend that there should be a secondary objective for both the Financial Conduct Authority...
Recommendation
We recommend that there should be a secondary objective for both the Financial Conduct Authority and the Prudential Regulation Authority to promote long-term economic growth. The wording will be crucial: pursuing international competitiveness in the short term is unlikely to …
Read more
Government Response Summary
The government has implemented new secondary objectives for the FCA and PRA to focus on medium to long-term growth and competitiveness, while maintaining high regulatory standards.
HM Treasury
View Details
12
Accepted
Para 90
The FCA should make every effort to ensure that it is not designing or implementing...
Recommendation
The FCA should make every effort to ensure that it is not designing or implementing regulation in a way which could unreasonably limit the provision of financial services to consumers who might benefit from them. When placing new requirements on …
Read more
Government Response Summary
The government states that the FCA's existing objectives and regulatory principles are already well-aligned with financial inclusion objectives.
HM Treasury
View Details
13
Accepted
We welcome the clearer acknowledgement that the FCA is working to support financial inclusion, and...
Recommendation
We welcome the clearer acknowledgement that the FCA is working to support financial inclusion, and we would urge the FCA to continue to do so. The FCA should provide an annual report to Parliament on the state of financial inclusion …
Read more
Government Response Summary
The government states that the FCA's existing objectives and regulatory principles are already well-aligned with financial inclusion objectives, and the government already publishes an annual report on financial inclusion.
HM Treasury
View Details
19
Accepted
Para 119
The information the FCA has made available on how it is performing against its service...
Recommendation
The information the FCA has made available on how it is performing against its service standards shows a deteriorating picture. The FCA has a reputation for being too slow in its authorisation work, and this will inevitably hold back British …
Read more
Government Response Summary
The FCA wrote to the Committee alongside the publication of their Annual Report and Operating Service Metrics and will keep the Committee updated on the progress made to reduce authorisation queues.
HM Treasury
View Details
24
Accepted
Para 160
The FCA should investigate whether there are more opportunities to enable larger firms to undertake...
Recommendation
The FCA should investigate whether there are more opportunities to enable larger firms to undertake controlled, supervised experiments with innovative products. For example, it may be desirable to allow firms to be more experimental with the designs of new products, …
Read more
Government Response Summary
The FCA will explore using market innovation services to support more large firms in controlled testing of innovative products, with measured safeguards.
HM Treasury
View Details
Conclusions (1) Observations and findings — click to expand
5
Conclusion
Accepted
Para 30
Deregulation or simplification will in themselves impose costs on industry in the short term. Regulators should make every effort to limit the costs of compliance with the rules, for example by communicating planned changes in advance, grouping sets of changes together, and minimising the frequency of changes to those where …
Government Response Summary
The FCA seeks to balance costs imposed on firms with delivering a strong system of regulation, prioritises work based on evidence of consumer harm or risks to market integrity, and makes use of cost benefit analysis and post-implementation reviews.