Source · Select Committees · Public Accounts Committee
Recommendation 6
6
Regulators must balance different objectives and duties when they exercise their functions.
Conclusion
Regulators must balance different objectives and duties when they exercise their functions. This means that they balance risks and manage the associated trade-offs. In practice, this may involve accepting a higher level of risk in some areas based on potential benefits in others. For example, a decision by financial regulators to relax affordability standards for mortgages could help more people purchase a home, but would mean 6 C&AG’s report, Figure 2 7 C&AGs’ report, para 1.6 8 Committee of Public Accounts, Regulating for growth - Committees - UK Parliament 7 accepting a higher risk of home repossessions and consumer distress.9 HM Treasury called for regulators to be less risk averse in the March 2025 Action Plan.10