On 29 July 2024, the Financial Conduct Authority (FCA) published a statement of policy on cost benefit analyses (CBAs). The statement of policy, which has been published following the establishment of an independent CBA Panel, sets out how the FCA carries out its CBA.

The FCA is required under the Financial Services and Markets Act 2000 to publish a statement of policy on its approach to CBA. Earlier in 2024, the FCA outlined its approach to analysing the costs and benefits of its policies and explained that it would establish the CBA Panel and publish a statement of policy later in the year.

The statement of policy includes information on:

  • The methodology used in preparing CBAs.
  • Matters to which the FCA has regard in determining whether certain legislative requirements apply or not.
  • How the FCA makes sure it considers timely representations made in connection with its CBAs.
  • Instances where the requirement to consult the CBA Panel in relation to the preparation of a CBA does not apply.
  • The FCA’s arrangements to make sure the CBA Panel may review FCA’s performance against relevant legislative requirements and provide recommendations.