The UK Financial Conduct Authority (FCA) has issued a statement affirming its mission to simplify and reduce the cost of firms in need of growth capital. The FCA seeks to reduce the burden on businesses raising money. The announcement follows the new “Consumer Duty,” which is designed to ensure that consumers receive good outcomes when using financial services.
Nikhil Rathi, Chief Executive of the FCA, said they are firmly committed to doing their part to support economic growth.
“The Consumer Duty marked a major shift for firms and consumers by setting higher and clearer standards of consumer protection and requiring firms to put their customers’ needs first. We now want to seize the opportunity of the Duty and the move to a clear outcomes-based approach to streamline our rulebook, lowering costs for businesses and supporting the competitiveness and growth of the economy.”
The FCA holds a mandate to support UK competitiveness and economic growth.
The regulator highlights its support of innovation in financial markets, including the creation of a Digital Sandbox, a testing environment that supports firms at the early stage of product development.
The FCA said they will consult on a new independent panel for cost-benefit analysis. This will also apply to any proposed regulations that have an estimated annual cost of over £10 million and up.
It should be noted that while the UK is striving to boost capital markets, support innovation while reducing cost and streamlining access to capital, the US securities regulator has taken a position of pursuing political goals which inevitably add cost for businesses and undermine economic growth. Some insiders have described the Securities and Exchange Commission as the anti-capital formation SEC.