Recommendation 80

Throughout the evidence, witnesses emphasised the importance of innovation to the competitiveness and growth of the UK’s financial services sector. We received evidence that there are regulatory constraints on innovation in the sector, notably that despite efforts from the FCA and the PRA to improve their operational efficiency, the authorisation process in the UK remains slow. We heard that slow authorisations introduce delays for firms entering the market and introducing new products, constituting a notable drag on the sector’s growth. Additionally, we heard that the FCA and the PRA’s operational efficiency compares unfavourably to regulators in other jurisdictions, reducing the UK’s attractiveness as a location for business and investment.