The Financial Conduct Authority and Prudential Regulatory Authority are to jointly launch a new unit aimed at supporting small businesses to achieve scale, the government announced yesterday.
Within the Financial Services Growth & Competitiveness Strategy, unveiled yesterday by HM Treasury, it states that the two regulators will launch a Scale-Up Unit to “enhance engagement with fast-growing, innovative regulated firms”.
Addressing representatives of the financial services industry at Mansion House in London last night, chancellor Rachel Reeves said the new initiative would aim to support “innovative” financial technology companies to grow.
The move was welcomed by Andy Bord, chief executive officer at Railpen, who said addressing the challenge of improving small businesses’ access to capital was “critical”.
“In line with our mission to achieve positive outcomes for members, we support the initiatives outlined by the government to bolster growth across the UK and remove costly barriers to investments,” Bord said.
“This includes the government’s plans to champion UK scale-ups. Currently, the main obstacle facing UK companies looking to scale is access to capital. Without this investment, many promising companies struggle to grow, seize timely opportunities and too often they are forced to rely on foreign capital.
“Addressing this challenge is critical to revitalising UK capital markets and to support long-term returns on members’ investments.
“We therefore welcome the government’s launch of a new Scale Up Unit to support the growth of innovative firms across the UK.”
The Scale-Up Unit will build on existing initiatives to support new entrants to the financial services sector.
The government’s strategy report stated that the two regulators would help companies to “build their understanding of regulatory requirements as they scale and ensure clear points of contact to facilitate timely responses to queries and access to relevant technical or specialist support”.
