Source · Select Committees · Treasury Committee
Recommendation 16
16
Accepted
Paragraph: 97
We therefore reiterate a recommendation made by a previous Treasury Committee, that the FCA be...
Recommendation
We therefore reiterate a recommendation made by a previous Treasury Committee, that the FCA be given the formal power and remit to be able to recommend formally to the Treasury changes to the perimeter of regulation, where that would enhance its ability to meet its objectives, in particular to prevent consumer harm. The FCA should set out any costs, both to firms and consumers. It would then be for the Treasury to consider such a recommendation promptly. All such recommendations and Treasury responses should be publicly disclosed.
Government response summary AI-generated
The government details the FCA's existing powers and actions to tackle non-compliant financial promotions and prevent consumer harm, but it does not address the specific recommendation to give the FCA formal power to recommend changes to the perimeter of regulation.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
97
Government Response
Accepted
HM Government · verbatim extract
Accepted
to HM Treasury to change or adapt relevant legislation setting the perimeter of regulation. We have also worked with HM Treasury to provide more transparency around the process by which we address harms emerging outside our perimeter. HM Treasury published the minutes14 of the first of the annual meetings between the CEO of the FCA and the Economic Secretary to the Treasury earlier this year. Any changes to our formal powers and remit are a matter for Government and Parliament to consider. We note that FSMA requires that we conduct a cost benefit analysis on proposed rules.
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