Source · Select Committees · Treasury Committee
Recommendation 12
12
Paragraph: 90
The FCA should make every effort to ensure that it is not designing or implementing...
Recommendation
The FCA should make every effort to ensure that it is not designing or implementing regulation in a way which could unreasonably limit the provision of financial services to consumers who might benefit from them. When placing new requirements on firms, the FCA should consider not only the impact on consumers and businesses, but also the impact on those who might be prevented from accessing financial services as a result of those new requirements, or who might find themselves accessing services on inferior terms. We recommend that the Treasury should require the FCA to have regard for financial inclusion in its rule-making, but not to make changes relating to financial inclusion to the FCA’s objectives.
Paragraph Reference:
90
Government Response
Acknowledged
HM Government
Acknowledged
The government notes this recommendation. As I set out in my letter of 25 July, the government’s position is that the FCA’s existing objectives and regulatory principles are already well-aligned with the government’s objectives on financial inclusion. The government does not consider that a separate ‘have regards’ to financial inclusion for the FCA would lead to a different approach or tangible improvements over the current arrangements. Many financial inclusion issues are complex and require several organisations to work together to come to a solution. There are numerous examples where this has been done successfully through close collaboration between the government, regulators, industry and the third sector, including through the government’s Financial Inclusion Policy Forum which was launched in 2018.