Financial services regulation in the UK is broadly carried out by the FCA and the Bank of England (including through the Prudential Regulation Authority (PRA)). The FCA’s regulation aims to protect consumers from harm, protect and enhance the integrity of the UK’s financial services sector, and promote effective competition in the interest of consumers. The Bank of England’s regulation aims to ensure the safety and soundness of firms (through the PRA) and to remove or reduce systemic risks that could pose a threat to financial stability (through the Financial Policy Committee and the Bank’s supervision of Financial Market Infrastructures).
The government has set out an ambition for the UK to be the world’s most innovative economy, and to maintain its position as one of the leading financial centres globally. The UK is well placed to achieve this, as host to a very mature and diverse domestic financial sector. This is a function of, but also relies on, the UK maintaining its international reputation as a safe and transparent place to do business in financial services; ensuring high regulatory standards in financial markets; protecting consumers; and allowing innovators in the financial sector that play by the rules to thrive, so that the benefits of new technologies can be fully realised.
Click here to download the full report.