‘Overhaul FCA objectives’

The Financial Conduct Authority’s proposed objectives need overhauling to avoid unnecessary complexity and perverse consequences, according to the Treasury select committee.

Current draft legislation gives the regulator the strategic objective of “protecting and enhancing confidence” and three operational objectives of consumer protection, protecting and enhancing the integrity of the financial system and promoting efficiency and choice in the market.

The TSC calls on the Government to scrap the strategic objective and add a fourth objective of promoting effective competition for the benefit of consumers. It adds that if the Government will not scrap the two-tier approach, amending the strategic objective to “ensure fair, efficient and transparent markets” would be an improvement.