Treasury has published its correspondence setting out recommendations for PRA and FCA, which coincide with the announcement of the Edinburgh reforms. Treasury is required, at least once each Parliament, to set out recommendations to the Prudential Regulation Committee under the Banking Act, and to the FCA under FSMA about aspects of the Government’s economic power to which the Committee should have regard when advancing regulatory objectives. The correspondence notes that the FSM Bill will introduce a secondary objective into FSMA for the respective regulators to facilitate the international competitiveness of the UK economy, and particularly the financial services sector, and its medium to long term growth. It asks the Committee and the FCA to focus on this, including the Government’s desire to swiftly implement the outcomes of the FRF review, its commitment to the UK being attractive to internationally active financial services firms and the Government’s support of innovation and technology in financial services.
