This idea was created by the Scrutinise team as a policy development prompt. It represents a live policy debate with substantial public evidence. Any registered user can contribute to it, and ownership can be transferred to any organisation or individual who wishes to champion it.
Enforcing the FCA's Competitiveness Duty: A Statutory Accountability Framework
The Financial Services and Markets Act 2023 added a secondary competitiveness objective to the FCA and PRA, but without any mechanism for Parliament or industry to hold the regulators to account for how they apply it. This proposal creates that mechanism.
Summary
The Financial Services and Markets Act 2023 added a secondary competitiveness objective to the FCA and PRA, but without any mechanism for Parliament or industry to hold the regulators to account for how they apply it. This proposal creates that mechanism.
Challenge (summary)
The FCA and PRA were given a competitiveness duty in 2023 but face no consequences for ignoring it. Regulated firms have no formal recourse when regulatory decisions damage the UK's competitive position.
Approach (summary)
A statutory annual competitiveness report from the FCA and PRA, subject to mandatory Select Committee scrutiny, with a right for industry bodies to submit formal objections that the regulators must publicly respond to.
First step (summary)
Amend the Financial Services and Markets Act 2023 to require the FCA and PRA to publish an annual Competitiveness Impact Statement for every major rule change, with a mandatory response mechanism.