New objectives and regulatory principles Regulator engagement with HM Treasury, external stakeholders, and Parliament Engagement with stakeholders
Part 1A of FSMA 2000 details the statutory panels which the FCA must establish and maintain. The FCA Practitioner Panel represents the interests of practitioners, the Smaller Business Practitioner Panel represents the interests of eligible practitioners, the Markets Practitioner Panel represents the interests of practitioners who are likely to be affected by the exercise of the FCA of its functions relating to markets and the Consumer Panel represents the interests of consumers.
	The FCA is required to consult the statutory panels and consider representations that are made by the panels. Where appropriate, the FCA must publish the representations it receives from the panels.
	The FCA appoints the members of the statutory panels. HM Treasury’s approval is required for the appointment and dismissal of the chair of the statutory panels. The Act inserts a new provision in FSMA 2000 that requires the FCA to prepare and publish a statement of policy detailing the process adopted for making appointments and the matters considered in determining who is appointed.
	The Act also inserts a provision in FSMA 2000 that requires the FCA to establish and maintain a panel called the Listing Authority Advisory Panel to represent the interests of practitioners who are likely to be affected by the exercise by the FCA of its functions relating to the listing, issue or trading of products on recognised investment exchanges and other markets the operation of which is regulated by the FCA.
	Section 2L of FSMA 2000 places a duty on the PRA to make and maintain effective arrangements for consulting PRA-authorised persons or persons appearing to the PRA to represent the interests of such persons. This includes a requirement to make and maintain the PRA Practitioner Panel (see section 2M of FSMA 2000).
	The PRA is required to consider representations that are made by the PRA Practitioner Panel. Where appropriate, the FCA must publish the representations it receives from the panel.
	The PRA appoints members of its statutory panel. HM Treasury’s approval is required for the appointment and dismissal of the chair. The Act inserts in FSMA 2000 a provision that requires the PRA to prepare and publish a statement of policy detailing the process adopted for making appointments and the matters considered in determining who is appointed.
	The Act also inserts a new provision in FSMA 2000 that requires the PRA to establish and maintain a panel called the Insurance Practitioner Panel to represent the interests of practitioners involved in the carrying on of the activity of effecting or carrying out contracts of insurance.
	Paragraph 11 of Schedule 1ZA to FSMA 2000 requires the FCA to make a report to HM Treasury at least once a year on a number of matters including the discharge of its functions, the extent to which it has acted compatibly with its strategic objective and the extent to which its operational objectives have been advanced. The existing requirement in relation to the FCA’s operational objective will also capture the FCA’s new secondary competitiveness and growth objective. The Act inserts new provisions into Schedule 1ZA to FSMA 2000 that requires the FCA to include in its annual report any engagement it has had with the statutory panels of the FCA, the PRA or the PSR and how it has complied with the statement of policy on panel appointments in section 1RA of FSMA 2000.
	Paragraph 19 of Schedule 1ZB to FSMA 2000 requires the PRA to make a report to the Chancellor of the Exchequer at least once a year on a number of matters including the discharge of its functions, the extent to which, in the PRA’s opinion, it has advanced its objectives. The existing provision in paragraph 19 in relation to the PRA’s objectives will also capture the PRA’s new competitiveness and growth objective. The Act inserts new provisions into Schedule 1ZB to FSMA 2000 that require the PRA to include in its annual report any engagement it has had with the statutory panels of the PRA, the FCA or the PSR and how the PRA has complied with the statement of policy on panel appointments in section 2NA of FSMA 2000.
	The Act inserts new provisions in FSMA 2000 that require the FCA and the PRA to each publish a CBA statement of policy which applies when the regulator is proposing to make new rules or amend existing rules. The statement of policy will make reference to the methodology of the CBA, the application of existing exemptions to carry out a cost benefit analysis, how the regulator considers section 138I(8) of FSMA 2000 (whether the costs and benefits can be reasonably estimated), how any representations made by stakeholders at the consultation stage are considered and the criteria for when the regulator does not need to consult with the cost benefit analysis panel in relation to the development of cost benefit analysis.
	Section 138J(2)(a) of FSMA 2000 requires the PRA to undertake and publish a CBA alongside a draft of any proposed rules. "Cost benefit analysis" is defined in section 138J(7) of FSMA 2000.
	The Act inserts a new provision in FSMA 2000 that requires the PRA to establish and maintain a statutory panel which is dedicated to supporting the development of the PRA’s cost benefit analyses for the purposes of section 138J. The Act requires the PRA to appoint two members to this panel who are employed by persons authorized, for the purposes of FSMA 2000, by the PRA.
	Section 138I(2)(a) of FSMA 2000 requires the FCA to undertake and publish a CBA alongside a draft of any proposed rules. "Cost benefit analysis" is defined in subsection (7).
	The Act inserts a provision in FSMA 2000 that requires the FCA to establish and maintain a statutory panel to provide advice in relation to cost benefit analyses for the purpose of section 138I of FSMA 2000. The Act requires the FCA to appoint two members of this panel who are employed by persons authorized, for the purposes of FSMA 2000, by the FCA.
	Section 103 of FSBRA 2013 sets out the PSR’s general duty to make and maintain effective arrangements for consulting relevant persons on the extent to which its general policies and practices are consistent with its general duties under section 49, and how its payment systems objectives may best be achieved. Section 103(3) confirms that these arrangements must include the establishment and maintenance of one or more panels of persons to represent the interests of relevant persons.
	The PSR appoints the members of the statutory panel. HM Treasury’s approval is required for the appointment and dismissal of the chair of the statutory panel. The Act inserts a new provision in FSBRA 2013 that requires the PSR to prepare and publish a statement of policy detailing the process adopted for making appointments and the matters considered in determining who is appointed.
	Section 104 of FSBRA 2013 states that before imposing a generally applicable requirement, the PSR must publish a draft of the proposed requirement, accompanied by a cost benefit analysis (defined in subsection (7)).
	The Act inserts a provision in FSBRA 2013 requiring the PSR to consult the FCA’s Cost Benefit Analysis Panel about the preparation of CBAs under section 104. It also places requirements on the FCA Cost Benefit Analysis Panel in relation to the PSR’s duties in connection with CBAs. It also requires the PSR to publish a statement of policy in relation to the preparation of CBAs for the purposes of section 104 FSBRA 2013 and include in its annual report, published in accordance with paragraph 7 of Schedule 4 to FSBRA, how it has complied with this statement.