In response to the FCA's report on the implementation of the secondary objective, as well as the announcement of two reviews aimed at simplifying the rules in the commercial insurance sector and its broader regulatory rulebook, our Director of Regulation Charlotte Clark said:
“The financial regulators play a crucial role in ensuring that the UK is welcoming to new business and provides an environment in which existing firms can thrive and grow. This is even more important given the new government’s Growth Mission. Economic growth can and should benefit consumers, and we have consistently called for our sector’s regulators to have an objective linked to growth and the UK’s international competitiveness.
“We welcome the FCA's report on the implementation of the secondary objective on growth and competition, and the commitment to advancing its ambitions. This report marks the beginning of a process that could boost UK prosperity while delivering good consumer outcomes.
“The FCA's work to ensure that rules for the commercial market are balanced appropriately with consumer protection is also welcome, alongside its efforts to work with the industry to remove barriers or friction within the system for firms. And, one year on from the implementation of the Consumer Duty, we’re pleased the regulator is working with industry to understand where duplication exists in the system and how regulatory requirements could be simplified, to make sure it’s working effectively.
“However, it’s important to note that initiatives such as the FCA's enforcement proposals published earlier this year, have the potential to knock international confidence in the UK as a good place to do business. Therefore, we urge the FCA to continue its work to embed the objective into its thinking and to work in partnership with industry on the best ways to help the UK financial services industry meet its full potential.”