Well-functioning banks or other financial intermediaries such as venture capital funds also spur technological innovation by identifying and funding entrepreneurs who are perceived to have the best chances of developing new products successfully and for implementing innovative production processes. Recent research has provided robust evidence supporting the view that financial development contributes to economic growth.
We have carefully considered this aspect upfront but also recognise the importance of ongoing review, as is currently under way in the UK. While the initial scope of SEAR will apply to approximately 150 firms, the Conduct Standards and enhancements to the F&P Regime and ASP procedures will apply to all regulated firms.