ACCA welcomes the opportunity to respond to the inquiry into the relationship between regulators and economic growth issued by The House of Lord’s Industry and Regulators Committee. As a chartered professional body, ACCA operates in the public interest; ensuring our members operate to the highest technical and ethical standards. We regularly conduct independent research globally to advance the profession for the public good.

ACCA believes that proportionate and effective regulation is crucially important—it supports the public interest and the reputation of a profession. In the UK, ACCA has over 100,000 members working in accountancy and finance roles. Our members span every sector and organisation size, from micro-businesses to global firms. As trusted advisors to business, they see first-hand how the cumulative burden of regulation erodes confidence, creates complexity, and drives costly compliance errors.

We note that the inquiry is focused on regulators and the efficiency of regulatory processes. ACCA contends that it is often the cumulative burden of regulation that poses the greatest difficulty to smaller businesses—rather than individual regulations. The tax system is one such example, where piecemeal changes cascade downward, increasing complexities and small-scale errors requiring compliance. In this context, regulators can support businesses by adopting the ‘Think Small First’ principle, making certain that business guidance is proportionate, practical, and achievable. ACCA believes that an integrated approach to regulation can give businesses more

certainty and stability. Alongside responses to specific questions, ACCA makes the following recommendations:

1. Stronger growth duty matched with adequate safeguards: This is pertinent to concerns that ACCA has identified in government proposals to shift supervision of AML/CTF regulated businesses from professional body supervisors (PBBs) to the Financial Conduct Authority (FCA).
2. Regulation underpins UK’s reputation as trusted place to do business: Legislation to establish the FRC should proceed without further delay. This will give businesses certainty and ensure the UK maintains its reputation for the highest standards of corporate governance.
3. Adopt a ‘one-minus-two approach:’ For every new business requirement added, two unnecessary requirements should be retired. Periodic and post implementation reviews can bring greater coordination. For example, stronger alignment between the respective registration processes for Companies House and UK Anti-Money-Laundering (AML), which current vary slightly from one another, would support business.
4. Improved data sharing between regulators: Greater data sharing can reduce parallel processes, overlapping obligations, and instances of businesses providing the same information twice. It can also support regulators in the execution of their responsibilities effectively and efficiently.
5. Fast lanes informed by multi-stakeholder feedback: ACCA reiterates the importance of a multi-stakeholder approach that allows for an inclusive, society-wide voice to inform AI regulation and its deployment.

To read the response in full, please download the consultation document found on this page.