Oxera was commissioned by the Office of Fair Trading (OFT) to conduct an assessment of the impact of the Financial Services and Markets Act 2000 on competition in the UK financial services industry. The Act created a new regulatory regime and established the Financial Services Authority as the single statutory regulator for the industry. It is a complex piece of legislation covering many different markets, including banking, insurance and investment business.
The Act’s competition review, to which the UK government committed itself when the Act was going through Parliament, is being carried out by the OFT in three stages. The first stage involved the design of a methodology to allow identification of the key areas where the Act is likely to have had a significant competition impact on the UK financial services industry.
The second stage was an application of the methodology to the Act to identify and rank those areas of the legislation that are of particular concern in terms of likely competition impact. At the third stage, the OFT may decide to undertake a more detailed market investigation into the most problematic areas identified. Oxera was commissioned by the OFT to carry out the first two stages of the review.
The research report for the first stage set out in detail Oxera’s methodology to carry out the FSMA competition review, while the report for the second stage, ‘Competition review of the Financial Services and Markets Act 2000’ was published in 2004 and can downloaded by going to All reports.