Dr Felix Martin has been appointed chair of the FCA’s new, independent Cost Benefit Analysis (CBA) Panel. Dr Martin will lead the Panel as it examines 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. The FCA estimates around a third of its CBA will be subject to the Panel’s review. Following consultation with the panel, the FCA and PSR will publish further details on which CBAs will qualify for review in the summer.
The Panel will begin reviewing the CBAs of proposed new policies from 1 August 2024. It will review them in advance of publication, allowing the regulators to consider its recommendations.
Ashley Alder, chair of the FCA, said: “I am 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. The FCA looks forward to working with the Panel as the organisation continues to enhance the way in which it conducts CBA analysis.”
Dr Felix Martin said: “CBA is a key analytical tool used by the FCA and PSR to ensure that their policy-making is evidence-based and proportionate. It is also an important mechanism of accountability to stakeholders. The new CBA Panel will help the FCA and PSR enhance their use of CBA through the provision of independent and objective review and advice. I am honoured to have been appointed as its inaugural chair, and the Panel members and I look forward very much to working with both institutions.”
