Financial services should not be held back by unnecessary rules, and regulation must work to evolve with the market, according to the watchdog
The regulator said it works to support consumer choice, and particular attention is given to areas where customer and company interest in not in line with one another.
The overarching objective is to promote competition in the interest of consumers, not for its own sake, the FCA added in the document setting out its approach to competition.
Differences between regulation and registration are explained in the FCA’s approach to authorisation document.
Looking for ways to improve regulation
The FCA has asked how its approach to both authorisation and competition could be improved and what else it could be doing?
Among the questions, is whether there is a clear understanding of the Threshold Conditions for authorisation and how support to meet minimum standards could be improved.
The watchdog also asked whether its competition remit, powers and aims are clearly understood and which other tools could be used when designing remedies to address a lack of competition.
Both approach documents are open for consultation until 12 March 2018, with the final documents to be published next year.
Andrew Bailey, FCA chief executive said: “Authorisation is the gateway for firms that want to operate in the financial services industry.
“We use it to prevent harm from occurring by ensuring that all firms meet our minimum standards before they are allowed to start doing business.
“It’s vital that we get it right to keep out firms that are not up to scratch and allow the right ones through. Effective competition in financial services benefits consumers and firms.
“We are one of the few financial regulators in the world with a core objective to promote competition and it applies to all the work we do,” he added.