On 8 May 2024, the Financial Services Regulation Committee (FSRC) announced that it is launching an inquiry into the secondary international competitiveness and growth objective given to the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) under the Financial Services and Markets Act 2023.

The FSRC was established by FSMA 2023 to scrutinise the work of financial services regulators. The focus of its first inquiry will be to examine how the FCA and PRA are applying themselves to the secondary growth and competitiveness objective, what progress has been made so far and what the implementation of those objectives might mean for the financial services sector in the UK.   

In particular, the Committee will explore:

  • To what extent the FCA and the PRA are focused on their secondary objective of facilitating the international competitiveness and growth of the UK economy, and the balance between the regulators’ primary and secondary objectives.
  • Whether the resources and culture of the FCA and the PRA facilitate the effective implementation of their secondary objective. 
  • In delivering their secondary objective on growth and competitiveness, what opportunities there are for the regulators to help to promote and support innovation in the financial services sector.  
  • Whether the agreed metrics related to the secondary growth and competitiveness objective allow for sufficient scrutiny of any progress made by the regulators.
  • How effectively the FCA and the PRA have consulted with industry in relation to their secondary growth and competitiveness objective.
  • How the FCA and PRA might draw on examples of regulatory policies in other jurisdictions to further the implementation of their secondary objective. 
  • How the regulatory landscape is affecting the UK’s attractiveness to domestic and international investors, and in particular to UK pension funds. 

The FSRC is inviting written submissions to its inquiry by 11 July 2024.