The FCA has published a speech given by Mary Starks (Director of Competition, FCA) entitled Competition policy in regulated markets.

In her speech, Mrs Starks paints a quick picture of the challenge of increasing competition in the UK banking sector noting that at the top end of growth estimates, analysts predict that the major high street banks might cede four points of lending market share to challengers over the next five years.

In relation to building competition, Mrs Starks states that the regulator’s role is not to pick winners nor tilt playing fields and whether new entrants succeed or fail is entirely down to them. However, the regulator’s role is to ensure that they can actually get onto the market. The FCA has been doing a couple of things including launching Project Innovate. Through this initiative the FCA is looking to provide extra support to new entrants as they prepare for authorisation as well as through their early months in the regulatory system. A significant part of that is a listening exercise – understanding what they find difficult or opaque about the regulatory system and clarifying, or helping them navigate it.

View Competition policy in regulated markets, 11 July 2014