Mansion House: New Remit Letters for UK Financial Conduct Authority and Prudential Regulation Authority to Focus on Growth

HM Treasury has published remits and recommendations for the U.K. Financial Conduct Authority and Prudential Regulation Authority, set out in a letter sent from Rachel Reeves, Chancellor of the Exchequer, to Nikhil Rathi, FCA Chief Executive, and in a letter sent by Ms. Reeves to Andrew Bailey, Bank of England Governor.

The letter to Mr. Bailey formally relates to recommendations for the Prudential Regulation Committee, the BoE committee that exercises its functions as the PRA. Ms. Reeves calls for the regulators to fully embed the secondary competitiveness and growth objective and, while pursuing their respective primary objectives, to consider how they can enable informed and responsible risk-taking by authorized firms. Ms. Reeves outlines her priorities, which include ensuring that: (i) innovative new firms are supported to enter the market, and existing firms are enabled to innovate and invest in new technologies, including the safe adoption of AI; (ii) customers can access appropriate advice and products; (iii) U.K. financial services firms are supported to play a significant role in supporting the Net Zero transition globally; and (iv) firms have a positive experience of engaging with the regulators from the point of initial application or inquiry, and that administrative burdens on firms are streamlined as far as possible, while maintaining high regulatory standards and a reputation as responsive and agile regulators.

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