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Overall, the QCA is in support of this Review, however, in addition to the proposed new growth and international competitiveness objectives for the Financial Conduct Authority (FCA), the QCA calls for a new proportionality objective to be added. 

The Government and regulators have an important role to play in ensuring financial services regulation is appropriate, fit for purpose and proportionate. There is a balance to be reached between protecting investors and allowing companies to thrive so they can offer returns to their investors and positive outcomes, including growth, for the wider economy. 

Adopting a new proportionality objective will give the FCA a deeper understanding of the UK’s markets and the companies that rely on them.

In particular, small and mid-sized quoted companies – who represent 93% of all quoted companies and who are often seen as the engines of growth of the UK economy – must have their size, stage of development and available resources taken into account especially when assessing the impact of proposed regulation. 

Hard-coding proportionality into the FCA’s objectives would ensure it is properly accountable, and will give market participants confidence that the markets are suitable for the needs of entities of all sizes. This should be a feature of all regulators’ objectives, including ARGA the regulator replacing the Financial Reporting Council.

The full QCA HM Treasury Future Regulatory Framework response can be viewed here. 

Tim Ward, Chief Executive, the Quoted Companies Alliance said:

“Too often regulation has a disproportionate and negative impact on small and mid-sized quoted companies – the engines of growth of the UK economy. HM Treasury, to achieve the aims of its Review, needs to hard-code a proportionality objective into the FCA’s objectives so that any regulatory action helps to build confidence in this vital part of our economy, rather than pile on more deterrents to growth.”

– Ends –

Notes to the Editors:

The HM Treasury’s Financial Services Future Regulatory Framework Review seeks to review the UK’s regulatory framework which sets the overall approach to the regulation of financial services, and establishes the institutional architecture needed to operationalise the regulatory regime. Particularly in light of the UK’s exit from the EU, this review is a distinctive opportunity to ensure that financial services in the UK are developed in a way that is fit for purpose and appropriate for our markets. 

For further Information please contact:

Ruby Halabi
Communications Executive, The Quoted Companies Alliance
T: 020 7397 8140

About The QCA
The Quoted Companies Alliance is the independent membership organisation that champions the interests of small to mid-size quoted companies.

There are around 1,250 small and mid-size quoted companies in the UK, representing 93% of all quoted companies. They employ approximately 3 million people, representing 11% of private sector employment in the UK, and contribute over £26bn in annual taxes (source).

Our goal is to create an environment where that potential is fulfilled. We identify the issues that matter to our members, keep them informed and interact to build the understanding and connections that help our members stay ahead. For more information please visit

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