UK FCA and PRA report on progress in advancing secondary competitiveness and growth objective

The UK Financial Conduct Authority (FCA) and UK Prudential Regulation Authority (PRA) have highlighted their progress in advancing their secondary competitiveness and growth objective in response to the House of Lords Financial Services Regulation Committee June 2025 report. In a one-year update dated 12 June, the FCA reported on a range of measures it has worked on, aimed at supporting UK competitiveness, including capital markets reforms, initiatives to improve retail investment and mortgage access, expanded innovation services, reduced regulatory reporting burdens and more streamlined supervisory and authorisation processes. Looking ahead, the FCA identifies further focus areas including open banking and open finance, tokenisation and investment reforms, and broader market initiatives.

Separately, in a letter dated 28 June, the PRA outlined progress in embedding the objective through prudential reforms designed to improve proportionality and reduce unnecessary burdens, including the strong and simple regime for smaller banks, changes to reporting requirements, reforms to capital and resolution frameworks, and initiatives to support investment and operational efficiency. The annex to the letter provides more information on the PRA's response to each of the Committee's recommendations it had set out to the PRA. Both regulators emphasised that promoting competitiveness and growth must remain consistent with their primary objectives of maintaining financial resilience, market integrity and consumer protection.

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