On 8 December 2023, HM Treasury issued a response to its earlier Call for Proposals on what additional metrics it is most appropriate for the PRA and FCA to publish.
The Financial Services and Markets Act 2023 (FSMA 2023) introduces new, secondary objectives for the PRA and FCA to facilitate the international competitiveness of the UK economy and its growth in the medium to long term. The earlier Call for Proposals sought to determine what additional metrics it is most appropriate for the regulators to publish, in order to ensure that reporting on the new secondary objectives is sufficient to support scrutiny of the regulators’ work in embedding and advancing their new objectives. The HM Treasury response summarises the views of respondents and sets out the new metrics that the regulators will report going forward, because of the Call for Proposals.
FSMA 2023 requires the PRA and FCA to produce reports on how they have worked to embed the new objectives in their processes and practices and advanced the new objectives. These reports must be published within 12- and 24-months of the objectives coming into force. FSMA 2023 also amends the requirements for the regulators’ annual reports, so that the report must include information on how the regulator has, in its opinion, complied with the duty to advance the objective. The regulators expect to publish the first editions of new metrics as part of the next editions of their regular quarterly reporting, or by the first report on the new secondary growth and competitiveness objectives by Summer 2024 or, where appropriate, in their 2023-24 annual reports.