Find out how we measure our impact before we intervene with rule-making powers.
Our group of publications aim to provide all of our stakeholders with a clear picture of how we assess the likely impact of our policies:
- How we analyse the costs and benefits of our policies (PDF)
- When and how we use field trials (PDF)
- Occasional Paper No. 39: Estimating the benefits of interventions that affect consumer behaviour on techniques that may be used to estimate the benefits of some of our policy interventions
We have also separately set out how we measure our impact after we intervene.
Measuring our impact ex ante
The paper sets out our approach to cost benefit analysis (CBA). It covers the legal and analytical requirements for CBA at the FCA, the typical stages, uses and contents of a CBA, how we estimate compliance costs and reduce the burden to business with a standardised costs model. It also sets out how we estimate benefits and how we address uncertainty.
’When and how we use field trials’ clarifies when we consider it appropriate to undertake field trials to gather evidence for our policies. The paper covers some broad principles on when we are more likely to use field trials including feasibility, impact and proportionality.
It also sets out the typical stages of field trials conducted by the FCA. It is intended to help firms and practitioners understand the FCA’s use of field trials and what firms can expect if they partner with us on a field trial.
The aim of the paper is to help us estimate the benefits of our interventions, while recognising the challenges.
The Occasional Paper focuses on how the benefits of regulations that intend to improve outcomes for consumers could be captured. In retail environments where behavioural biases are prevalent, we cannot assume that consumers make optimal decisions that are aligned with their own interests.
Many of our regulations intend to improve those decisions, yet the claimed benefits of such improvements have seldom been measured. The paper describes a few available techniques to monetise benefits and their application in financial services markets.
We intend to keep our approach to measuring impact up-to-date, and welcome views from stakeholders at any point about the approach and techniques we use.
For more information, contact:
[email protected] on cost benefit analysis