In its latest report, the London Market Group (LMG) seeks to support parliamentarians and policymakers in evaluating the work of financial regulators.
The “Regulating for Growth” report focuses on the Secondary International Competitiveness and Growth Objective, which has been in effect for two years, and offers guidance on assessing policy planning, stakeholder engagement, and the effectiveness of regulatory actions.
The report comes two years after the passage of the Financial Services and Markets Act (FSMA) 2023. LMG notes that this is a key time to determine whether financial regulators have established the frameworks needed to fulfil their statutory duties to promote economic growth and international competitiveness.
Caroline Wagstaff (pictured above), chief executive officer of LMG, said, “The PRA and FCA have talked extensively about the need to embed a culture of growth and competitiveness, and how it should run through their day-to-day activities, as well as how they consider new projects.”
She added that while annual competitiveness reports have outlined the regulators’ efforts so far, the main issue is how these efforts will be monitored and scrutinised in the future.
Wagstaff explained, “This report is designed to equip policymakers with the tools to support this scrutiny. Regular external challenge through engagement and dialogue from Parliament, HM Treasury, industry and other stakeholders will be crucial to delivering the operational and cultural changes that will make a difference.”
She further noted that the aim is to provide MPs, peers, committee members, and civil servants with practical resources to measure progress and maintain momentum on the issue. The report encourages interested parties to assess both the intent and delivery of the regulators’ objectives.
The broader London Market context shows that companies reported a total premium income of £49.273 billion for 2024, representing a 1.7% increase from the previous year. This growth, while positive, marks a slowdown compared to the double-digit increases seen in 2022 and 2023.
Property remains the largest class of business in the London Market, accounting for just under 30% of total premiums. Liability and marine follow at 14% and 13%, respectively.
Leadership changes are also on the horizon for the LMG, with Chris Lay, CEO of Marsh McLennan UK, set to become the group’s next chair in January 2026. Lay will succeed Sean McGovern of AXA XL Lloyd’s and London Market, who will remain on the LMG board after completing his term.
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