Accountability of regulators Regulator engagement with HM Treasury, external stakeholders, and Parliament Regulators’ relationship with HM Treasury Requirement of the regulators to respond to HM Treasury recommendations
The Act introduces a requirement for the regulators to respond annually to the recommendations made by HM Treasury in the recommendation letters under existing provisions in FSMA 2000. The regulator’s response should outline the action the regulator has taken or intends to take, or the reasons the regulator has not taken and does not intend to take action on the basis of the recommendations. The response will be laid before Parliament by HM Treasury. This is intended to increase HM Treasury’s and wider stakeholders’ ability to understand how the regulators have taken into account the recommendations. An analogous provision is made for the PSR, inserted into FSBRA 2013.
	In future, to ensure that it is clear which recommendations are in force, and so need to be included in the response, HM Treasury will make clear in its recommendations letters whether the recommendations replace previous recommendations or are in addition to them