Today’s hearing between the Financial Conduct Authority (FCA) and the Treasury Select Committee will be critical to the next phase of the UK’s economic recovery, according to specialist consultancy firm Crossbridge.
The Chairman of the Treasury Committee recently questioned the Prudential Regulation Authority (PRA) about the disadvantage under which challenger banks operate when compared with their high street rivals.
The issue is due to be discussed at session today, with John Griffith-Jones, Chairman of the FCA, and Tracey McDermott, Acting Chief Executive of the FCA, both in attendance.
Haydn Lightfoot, Associate Partner at Crossbridge, said: “Today banks will be interested to see where the FCA will position itself between being authoritative or collaborative, in response to the Treasury Select Committee.
“In answering the committee’s questions, the FCA will need to strike the right balance between the two, whilst also reaffirming its commitment to protecting the reputation of the UK’s financial services sector, retaining its appeal, promoting competition and protecting bank customers.
“With some banks already debating whether to keep their headquarters in the UK, the approach the FCA decides to take will be crucial in the next phase of the UK’s economic recovery, as it will the set the tone for relations between the banks and the UK regulator.”