The Chancellor of the Exchequer, Sajid Javid, has written to the Financial Conduct Authority (FCA), the Prudential Regulation Committee (PRC) at the Bank of England and the Financial Policy Committee (FPC). The letters set out the Chancellor’s view of what each organisation’s remit should be.
In his letter to FCA chief executive Andrew Bailey, Mr Javid mentions that the Government wants:
- To see increased competition across all sectors of the financial services industry, but especially in retail banking
- London to maintain its position as the leading international finance centre
- To see increased innovation within financial services
- Financial services to work in the best interests of consumers and customers to receive better outcomes
Confirming that the Government’s priority is to deliver strong and stable growth, the letter to Mr Bailey says:
“The FCA’s main contribution to this economic policy is, working with the Bank of England’s Financial Policy Committee and the Bank of England acting in its capacity as the Prudential Regulation Authority, to protect consumers, promote competition in financial services and to protect and enhance the integrity of the UK financial system. A strong and stable financial system supports economic growth, helps achieve improved outcomes for consumers, facilitates productive investment and underpins the UK’s position as an important global financial centre.”
The PRC and FPC letters were both sent to Bank of England governor Mark Carney, and here Mr Javid calls on the various organisations to work together to achieve a common goal. The FPC letter says:
“The government is also committed to UK financial services being effectively regulated; securing the right balance between a financial sector that is globally competitive and secure over the long-term. The FPC’s main contribution to these goals is protecting and enhancing financial stability in the UK, working in tandem with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA). The government believes that a strong and stable financial system supports economic growth, facilitates the provision of finance to support the expansion of the economy’s productive capacity and underpins the UK’s position as an important global financial centre.”
On November 19 2019 the Times newspaper reported that Mr Javid is likely to remain as Chancellor should the Conservatives win the General Election.
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