UK Financial Regulator Warns of Risks in Push for Economic Growth

The FCA cautions that relaxing financial regulations could lead to more scandals and consumer harm as the government prioritizes growth.

The Financial Conduct Authority (FCA) has raised concerns about the government's push to ease financial regulations to stimulate economic growth.
FCA Chief Executive Nikhil Rathi warned that increased risk-taking could lead to financial scandals and attract bad actors in the sector.
Chancellor Rachel Reeves has argued that post-2008 financial crash regulations have stifled growth and need to be reformed to encourage innovation and competitiveness.
The FCA emphasized the need for a balanced approach, rejecting a 'race to the bottom' in deregulation and advocating for adherence to international standards.
Consumer groups and MPs have expressed concerns that prioritizing growth over protections could harm ordinary investors and erode trust in financial markets.