The secondary competition objective (SCO), as set out in Financial Services and Markets Act 2000 (FSMA), came into force on 1 March 2014 and states that:
‘When discharging its general functions in a way that advances its objectives, the PRA must so far as is reasonably possible act in a way which, as a secondary objective, facilitates effective competition in the markets for services provided by PRA‑authorised persons in carrying on regulated activities’.
Since it came into effect, our SCO has helped inform the design of several important parts of our framework for prudential regulation. In addition to new policies, we also take a proactive approach to our secondary objective by considering changes to existing policies to facilitate effective competition. Read the Annual Competition Report 2019 on pages 48-53 of the PRA Annual Report 2019.