Context
The HM Treasury has published an action plan, which sets out the Government’s approach to regulation and regulators.
Key points to note and next actions
The vision, as set out in the paper, highlights four themes that it is looking for the regulatory system to focus on:
- Support growth. A regulatory system that not only protects consumers and supports competition, but also encourages new investment, innovation, and growth.
- Targeted and proportionate regulation. Regulate only where necessary and allow space for discretion and good behaviour. In most cases, businesses operate in a responsible and sensible manner.
- Transparency and predictability. To foster the certainty essential for investment, it is vital that the regulatory regime is stable, predictable and consistent.
- Adapt to keep pace with innovation. The approach to regulation must allow the UK to take advantage of new technologies and innovations, including artificial intelligence, digitalisation, decarbonisation and increased automation.
Included in the paper are key regulator pledges, from regulators including the FCA and PRA, The Pensions Regulator, Environment Agency, Civil Aviation Authority, ICO, Ofcom, HSE, etc
Among the FCA pledges are:
- Provide 50% more dedicated supervisors to early and high growth firms, to help them navigate the regulatory system and support their growth.
- Indicate more often that the FCA is ‘minded to approve’ start ups to help them secure funding.
- Reduce regulatory reporting requirements for firms.