Govt plans to create FCA duty to consider economic growth

David Cameron
David Cameron defending the Queen’s speech

The Government is imposing a duty on the Financial Conduct Authority and other regulators to consider economic growth when creating new rules.

In the Queen’s speech last week, the Government said a draft deregulation bill will be published to reduce the burden of excessive or unnecessary regulation.

The Government has consulted on the regualtors’ compliance code and will now legislate to amend it in the next year so regulators must consider economic growth.

The bill will reduce the qualifying period for Right to Buy and Right to Acquire from five years to three years.

It will also overhaul employment rules and exempt the self-employed from health and safety laws when their work activities pose no potential risk of harm to others.

The Government says many other regulations are being scrapped and reformed either administratively or via secondary legislation.

Evolve Financial Planning director Jason Witcombe says: “Regulations are designed to protect consumers but they should not create complete paralysis in the industry.”