2017年-FCA英国金融行为监管局_annual_competition_report_2016_17_52页_1mb

2016/17 Annual Competition Report Summary

Core Content

This Annual Competition Report outlines the FCA's efforts to promote competition and innovation in the UK financial services sector from April 2016 to March 2017. It highlights the importance of effective competition in delivering better value, quality, and choice for consumers, and demonstrates how the FCA uses a variety of tools and powers to achieve this goal.

The report is structured to provide an overview of the FCA's work, including market studies, enforcement actions, and regulatory initiatives, and to explain how these activities align with the broader objectives of promoting competition and protecting consumers.

Main Points

1. Promoting Effective Competition

• Effective competition is defined as firms competing on service, quality, price, and innovation, with consumers having the information they need to make informed choices.
• The FCA aims to ensure that more efficient and innovative firms thrive, while less efficient ones are driven out of the market.
• The promotion of competition is a key operational objective, alongside consumer protection and financial system integrity.

2. Key Markets Investigated

• Credit Cards: £67.6bn in outstanding debt.
• Mortgages: £1.3tn in outstanding residential mortgage debt.
• Asset Management: £6.9tn in value of assets managed in the UK.
• Investment and Corporate Banking: £17bn in total gross fees in primary markets.

3. Market Studies and Remedies

• The FCA completed market studies on Credit Cards and Investment and Corporate Banking.
• Published interim findings on the Asset Management Market Study.
• Launched the Mortgages Market Study and Retirement Outcomes Review.
• Tested and implemented remedies in the Cash Savings, Retirement Income, and General Insurance Add-ons markets.
• Launched a new market study on investment platforms to address concerns around product complexity and cost transparency.

4. Innovation and Regulatory Support

• The FCA received 371 requests for support from innovative businesses, with 17 firms becoming fully authorised.
• The Innovate project helps firms test ideas, obtain authorisation, and engage with overseas regulators.
• The New Bank Start-up Unit (NBSU) was established to reduce entry barriers for new banks, resulting in 8 new banks being authorised.

5. Competition Enforcement

• The FCA has powers under the Competition Act 1998 (CA98) and Enterprise Act 2002 (EA02) to enforce competition law and conduct market studies.
• Launched two competition enforcement cases during the year.
• Issued 23 'on notice' letters and six advisory letters to firms.
• Conducted consultations on market investigation references to the CMA, particularly in the investment consultancy services market.

6. Behavioural Economics

• The FCA is a global leader in applying behavioural economics to financial regulation.
• Conducted trials to understand and address under-repayment in credit cards and annuity decision-making.
• Implemented text alerts to help consumers avoid overdraft charges.
• Continued to use behavioural science in regulatory activities to improve consumer outcomes.

7. Consumer Engagement and Long-standing Customers

• Found that low consumer engagement in financial markets can lead to suboptimal outcomes.
• Addressed concerns around long-standing customers, who may be locked into less competitive products.
• Introduced a 'sunlight' remedy to increase transparency and encourage better value for existing customers.
• Issued rules requiring general insurance firms to disclose previous year's premiums during renewal.

8. Regulatory Tools and Prioritisation

• The FCA uses Sector Views to set priorities based on the collective intelligence of the organisation.
• Prioritised markets with significant consumer impact, such as credit cards, mortgages, and asset management.
• Collaborated with international regulators to promote cross-border innovation and competition.

Key Information

• The FCA's work is guided by the Financial Services and Markets Act 2000 (FSMA), which sets out its competition mandate.
• The report includes interim findings, consultations, and plans for future work, including a Strategic Review of Retail Banking Business Models and new market studies on wholesale insurance and investment platforms.
• The FCA's use of behavioural economics and experimental methods is central to its approach in addressing competition concerns.
• Co-operation agreements with regulators in Australia, Singapore, Hong Kong, Canada, Japan, South Korea, and China help facilitate innovation across borders.

Conclusion

The FCA continues to be at the forefront of promoting competition in the UK financial services sector. By using a combination of market studies, enforcement actions, innovation support, and behavioural insights, it aims to improve consumer outcomes and ensure that markets function effectively and fairly. The report underscores the importance of a proactive and evidence-based approach to competition regulation.