The Treasury Committee has warned the Government that, in looking at the opportunities for regulatory reform and considering what it can offer, it must take care to ensure that competitiveness does not become the primary objective of regulation. It is crucial, it says, that regulators should not come under pressure to lower regulatory standards.
Specific recommendations include that:
- FCA should have regard for financial inclusion in its rulemaking;
- PRA should consider what can be done to level the playing field between smaller and larger firms;
- FCA should consider how larger firms might be encouraged to innovate; and
- both regulators should take into account the importance of growing the economy