Audit Office: Regulators must prove they are value for money

Carmen Reichman
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The National Audit Office (NAO) has called on the financial regulators to show they are providing value for money after finding they do not have processes in place to judge the best use of their cash.

The new twin peaks regulators - the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA,) - will cost the industry about £664m this year, 24% more than the regulator they replaced last April, the Financial Services Authority (FSA). But neither regulator has yet put in place a proper way of evaluating the benefits and costs of how they spend their budgets, the NAO found in its review of the new regulatory structure. For example, the FCA estimates the level of consumer harm in the individual reviews it carries out, but it has not yet established an overall way...

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