We welcome the Chancellor’s Mansion House speech and will work closely with the Treasury to support the proposals announced by the Chancellor.
Our Business Plan this year highlights our commitment to a range of work designed to strengthen the UK’s position in global wholesale markets and putting consumer needs first. We have already taken significant steps to support UK capital markets and will continue to build on that strength in the months ahead to support the reforms announced today.
The Investment Research Review
The FCA supports high regulatory standards in the UK and aims to make sure our capital markets are dynamic and effective for all participants.
The FCA will carefully consider Rachel Kent’s report and its recommendations, in line with our objectives. We will start engaging immediately with market participants. This engagement will inform the content of any consultation proposals. Subject to that feedback, we intend to consult on an accelerated timetable on potential regulatory changes that could introduce more options on how to pay for investment research so as to achieve an outcome of improving investor research into markets while providing value for money to institutional and retail investors.
The FCA will also take feedback from the market on the timing of any rule changes, driven by market need and firms’ operational capacity to absorb changes. Subject to this detailed consultation feedback and FCA Board approval, we will aim to make relevant rules in H1 2024.
Pending any regulatory reform, we are open to consider swift actions, if needed, to support firms impacted by changes to regulation in other jurisdictions, based on discussion with individual firms or parts of the market.