New Cost Benefit Analysis Panel to be chaired by Dr Felix Martin

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.”

Notes to editors

1. The Financial Services and Market Act 2023 (FSMA) requires the FCA to establish and maintain a new CBA Panel.

2. Appointment of the chairs of FCA statutory panels are agreed by the FCA Board and approved by HM Treasury. The appointment of Felix Martin is effective from 1 May 2024 for an initial 3-year term.

3. Appointments of Panel members are agreed by the Board and all Panel members have commenced their terms.

4. The 9 Panel members are:

   • Dr Felix Martin (chair), an economist, fund manager and development banker whose 25-year career in international finance has spanned both the public and private sectors. He is currently a non-resident senior fellow at the Center for Global Development in Washington, DC
   • Professor Mark Freeman (deputy chair), professor of finance and an associate dean of the Faculty of Social Sciences at the University of York
   • Stephen Gifford, an economist with 30 years of professional experience with several NED roles including member of the Regulatory Policy Committee and member of the Office for the Internal Market Panel, and chief economist of the Faraday Institution.
   • Professor Sarah Smith OBE, professor of economics at the University of Bristol, an applied micro-economist whose research interests focus on public policy
   • Dr Daniel Fujiwara, director of economics and social value at Social Value Portal and visiting fellow at London School of Economics
   • Peter Andrews, senior adviser at economic consultancy Oxera Consulting LLP, providing services to public and private sector clients
   • Ed Harley, head of legal and compliance, Global Platform Solutions, Fidelity International
   • Alan Trotter, chief financial officer EMEA, Invesco
   • Frances Haque, chief economist at Santander
5. Find out more about the CBA Panel[1].
6. Read the FCA’s framework for analysing the costs and benefits of policies[2] – to be updated in summer 2024.