Government Urges Financial Regulators to Boost City of London Growth

The UK government is intensifying its efforts to ensure that financial services regulators actively contribute to the growth of the City of London. Chancellor Rachel Reeves has expressed support for the Conservative Party's initiative to introduce a secondary objective for the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). This new mandate requires these regulators to enhance the international competitiveness of the UK economy and support its medium to long-term growth. Reeves highlighted concerns regarding the effectiveness of the City’s regulatory bodies in fulfilling these objectives. She, along with Tulip Siddiq, the newly appointed economic secretary to the Treasury, is actively engaging with regulators to assess their practical efforts in promoting this secondary goal. Their inquiries focus on understanding the specific actions being taken to ensure that the financial sector remains robust and competitive on a global scale. The FCA, which oversees nearly 50,000 businesses in the UK, plays a crucial role in maintaining the integrity and efficiency of the financial market. The government’s push for a more proactive stance from the FCA and PRA reflects a broader strategy to bolster the UK’s financial landscape amid increasing global competition. As the government seeks to reinforce the City of London’s status as a leading financial hub, the emphasis on regulatory support underscores the importance of aligning financial oversight with economic growth objectives.