FCA must get behind promoting competition
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The Financial Conduct Authority should have a primary duty to promote effective competition in the banking sector, according to the Independent Commission on Banking.
The ICB published its interim report on banking reform this week. Chairman Sir John Vickers said: “There is the current Government review of regulatory institutions in the UK. We believe this gives an opportunity for the promotion of effective competition to be a central force in UK regulation.”
The report says: “The FCA will have regulatory tools not available to the general competition and consumer authorities, and in line with an earlier recommendation by the commission, the FCA should have a clear primary duty to promote effective competition.”
The comments echo the Treasury select committee which published a report into competition and choice in the banking sector earlier this month.
The select committee report said: “We are disappointed that the Government has not gone further in making competition at least one of the operational objectives of the FCA.
“We do not understand how the FCA will be able to facil- itate efficiency and choice in the market while treating competition as a secondary consideration.”
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