Our secondary objective supports the international competitiveness and growth of the UK economy in the medium to long term.
Alongside our primary strategic and operational objectives[1], we have a secondary international competitiveness and growth objective.
The secondary objective, as set out in the Financial Services and Markets Act 2000[2], is: 'facilitating, subject to aligning with relevant international standards:
- the international competitiveness of the economy of the UK (including in particular the financial services sector), and
- its growth in the medium to long term'
As we work towards our primary objectives, we must look at how our work affects our secondary objective and advance this objective so far as reasonably possible. But we must also make sure that we maintain our strong focus on consumer protection, market integrity and effective competition.
You can find out more about our approach in our statement on the secondary objective (PDF)[3].
What the secondary objective covers
International competitiveness
We consider international competitiveness as a measure of how attractive the UK is for businesses, consumers and investors.
It measures how well the UK economy:
- achieves sustainable, positive economic outcomes
- attracts international businesses to the UK
- enables UK-based firms to compete effectively in international markets
Growth of the UK economy
We consider the medium to long-term growth of the UK economy.
Under the secondary objective, we're not required to facilitate short-term economic growth or to grow the financial services sector where that may not lead to, or may adversely affect, the competitiveness and growth of the UK economy in the medium to long-term.
International standards
We consider relevant international standards to mean those developed and adopted by recognised standard-setting bodies, such as:
- the International Organisation of Securities Commissions (IOSCO)
- the Bank for International Settlements (BIS)
Remit of the secondary objective
The secondary objective only applies when advancing our primary objectives by exercising our general functions (as listed in s.1B of FSMA). These functions include:
- rule-making (s.1B(6)(a))
- functions in relation to giving general guidance (s.1B(6)(c))
- determining general policies (s.1B(6)(d)) that govern how we exercise particular functions
It doesn’t apply to individual authorisation, supervision or enforcement decisions.
Our work to advance our primary objectives already plays an important role in creating a safe, trusted and stable environment for firms to compete and innovate. This instils trust and confidence in UK financial services, makes the UK an attractive market for firms and investors, and supports the international competitiveness and growth of the UK economy.
Measuring our progress
We've published our first report on how we've advanced our secondary objective in the last year. The report sets out how we've:
- put the UK's international competitiveness and economic growth at the heart of the FCA
- helped financial services firms to succeed, including by improving the way we operate and setting international standards
- prioritised work which helps the financial services sector to facilitate UK economic growth and competitiveness
- supported and driven innovation
- fostered trust in the financial services sector and reduced the costs of harm and firm failure
- acted proportionately to achieve our primary objectives while not impeding growth
