GovWire

The Financial Services and Markets Act (FSMA) 2023 introduces new, secondary objectives for the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) to facilitate the international competitiveness of the UK economy and its growth in the medium to long term.

This Call for Proposals sought to determine what additional metrics it is most appropriate for the regulators to publish, in order to ensure that reporting on the new secondary objectives is sufficient to support scrutiny of the regulators work in embedding and advancing their new objectives.

The Call for Proposals received 56 responses. The governments response summarises the views of respondents and sets out the new metrics that the regulators will report going forward, as a result of the Call for Proposals.

These metrics will be incorporated into the FCAs existing quarterly operating service metrics reporting and its Outcomes and Metrics Framework, which sets out how the FCA is measuring progress against the outcomes it seeks to achieve for consumers and market participants.

The PRA has also issued a consultation paper on its approach to policymaking as it takes on wider rulemaking powers under FSMA 2023 (The Prudential Regulation Authoritys approach to policy CP27/23), which includes details of its proactive approach to the new competitiveness and growth objective. It includes the metrics listed in the governments response to the Call for Proposals, as well as additional ones that the PRA considers to be relevant. The PRA will publish the first set of new metrics as part of the next edition of its quarterly Authorisation Performance Report or as part of its first annual report on the new secondary growth and competitiveness objective by Summer 2024.