"The FCA looks forward to working with the Panel as the organisation continues to enhance the way in which it conducts CBA analysis."
- Ashley Alder, Chair of the FCA
The Financial Conduct Authority (FCA) has appointed Dr Felix Martin as Chair of its new independent Cost Benefit Analysis (CBA) Panel, for an initial three-year term. This panel will examine how the FCA and Payment Systems Regulator (PSR) assess the proportionality of proposed policy changes. It will provide advice to the regulators on preparing and improving CBAs.
It’s estimated that roughly a third of its CBAs will be subject to the Panel’s review, with further details set to be published following the consultation. The Panel will begin reviewing the CBAs of proposed new policies from the 1st August 2024.
Alongside Dr Felix Martin, Prof. Mark Freeman has been appointed as Deputy Chair, with Stephen Gifford, Prof. Sarah Smith OBE, Dr Daniel Fujiwara, Peter Andrews, Ed Harley, Alan Trotter, and Frances Haque also sat on the Panel.
“CBA is a key analytical tool used by the FCA and PSR to ensure that their policymaking is evidence-based and proportionate. It’s also an important mechanism of accountability to stakeholders,” explained Dr Felix Martin.
He said: “The new CBA Panel will help the FCA and PSR enhance their use of CBAs through the provision of independent and objective review and advice. I’m honoured to have been appointed as its inaugural Chair, and the Panel members and I look forward to working with both institutions.”
Ashley Alder, Chair of the FCA, added that he’s “delighted that Felix has agreed to lead the new CBA Panel as its first Chair. CBAs are a crucial aspect of the FCA’s policy-making process to ensure that those policies we implement are proportionate and that the benefits outweigh the cost.”
