Lords launch inquiry into the role of regulators in economic growth

The House of Lords Industry and Regulators Committee has launched its new inquiry into the relationship between regulators and economic growth.

The session held on 4 November involved discussions from Sean Ennis, director at the centre for competition policy, and Dame Julia Black, professor of law and regulation at Oxford University.

Questions put to the academics addressed how wider changes in data, technology and AI were changing how companies and regulators operate, with legislative or policy changes needed to reduce regulatory burdens.

Speaking to members during the session, Ennis said: “We don’t know all the consequences of some of these technologies and if we accept the premise that legislation takes substantial time to develop and pass – there’s a reason, in some of these fast-moving areas, to allow regulators to make some changes to the way they operate.

“The question is, can those changes be predictable to operators? If they are unpredictable to operators, we really have a deep problem of motivating investment and innovation now, especially to make it happen in this country.”

FCA commitment

The FCA noted that it had work underway, or already completed, that addressed most of the recommendations in the House of Lords Financial Services Regulation Committee Report, published on 13 June 2025.

This includes a new concierge service, which will be operational by October 2025, to promote authorisation and innovation services and support international investment in the UK.

The regulator said it was also collaborating with the government on a baseline for assessing administrative costs as part of reducing the administrative burden by 25%.

An FCA spokesperson said: “We are fully committed to supporting economic growth in the UK and enabling a thriving insurance sector.

“That’s why we are simplifying our insurance rules, have cut unnecessary reporting for insurance firms and are supporting insurance applications to our Innovation Hub and Sandboxes.

“We continue to work closely with government, industry and other regulators to play our part in enabling growth while maintaining our commitment to protect consumers, safeguard market integrity and promote competition.”