HM Treasury publishes recommendations for the FCA

By Zhuan Faraj

On 9 December 2022, coinciding with the announcement of the UK government’s Edinburgh reforms, HM Treasury published its letter on recommendations for the Financial Conduct Authority (“FCA”).

HM Treasury is required, under s 1JA(3) of the Financial Services and Markets Act 2000, to make recommendations once in each Parliament to the FCA about aspects of the government’s economic policy to which the FCA should have regard. This letter is part of that statutory requirement.

The letter states that the FCA should have regard to supporting the government’s objective of medium to long-term economic growth in the interests of consumers and businesses. This includes:

• the government’s desire to facilitate investment in productive assets;
• the government’s ambitions for the provision of sustainable finance and long-term investment to support UK economic growth;
• the government’s commitment to securing better outcomes for all consumers;
• the government’s ambition to foster a well-functioning housing market; and
• the government’s aim to deliver smart regulatory reform.

The letter also states that the FCA should have regard to supporting the government’s objective to promote the international competitiveness of the UK. In particular, it should have regard to the government’s priorities including:

• the government’s desire to swiftly implement the outcomes of the Future Regulatory Framework Review;
• the importance of the government’s agenda to encourage trade and inward investment;
• the government’s commitment to ensuring the UK is attractive to international firms and activity;
• the government’s support of innovation and new developments in financial markets.

The remit letter can be read in full here.

For further UK financial services regulatory updates, please visit the Burges Salmon blog.