UK HM Treasury has published the Chancellor’s recommendations to the Financial Conduct Authority (FCA) under the Financial Services and Markets Act 2000, asking the FCA to further embed its secondary international competitiveness and growth objective across policymaking and supervision while continuing to deliver consumer protection, market integrity and effective competition. The release also includes the FCA’s annual response, alongside its second-year report on advancing the secondary objective. HM Treasury’s recommendations ask the FCA to have regard to the government’s economic policy, including the role of financial services in supporting sustainable lending and investment, enabling competition and innovation (including safe adoption of artificial intelligence), maintaining the UK’s position as a global finance hub, leading on sustainable finance, and reinforcing financial inclusion and home ownership. In its response, the FCA points to a five-year strategy with four priorities and describes measures to streamline regulation and supervision, including retiring more than 100 pages of outdated guidance, giving firms more flexibility in disclosure rules, withdrawing hundreds of supervisory publications, and consulting on retiring data collection returns expected to benefit 16,000 firms. The FCA also highlights initiatives intended to support “informed and responsible risk-taking”, including developing a new form of regulated targeted support for pensions and retail investments, emphasising flexibility in mortgage stress testing rules, and running a discussion paper on the future of the mortgage market. The Chancellor’s letter replaces previous remit letters and will be laid before Parliament, with the FCA required to respond within a year and annually thereafter. Forward-looking items flagged by the FCA include publishing an Open Finance rollout roadmap within a year with regulatory foundations in place by end-2027, further consultation later in the year on workplace pensions value for money alongside Department for Work and Pensions proposals, and consultations on updating climate disclosure rules for listed companies and on a proportionate approach as Buy Now Pay Later products are brought into FCA regulation.
HM Treasury 2025-07-10
UK HM Treasury sets out growth and competitiveness recommendations for the Financial Conduct Authority
UK HM Treasury recommends the FCA integrate international competitiveness and growth into policymaking under the Financial Services and Markets Act 2000. The FCA's five-year strategy prioritizes regulatory streamlining, flexible disclosure rules, and initiatives for informed risk-taking. Plans include an Open Finance roadmap, workplace pensions consultations, and climate disclosure rule updates.