Which of the following is NOT a principle of good regulation by the FCA and PRA?

The principle of good regulation emphasized by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) focuses on a range of ideals that promote effective governance and ethical behavior in the financial industry. Standardization, while a necessary component for ensuring compliance and consistency, is not explicitly noted as a guiding principle by either regulatory authority.

In contrast, principles such as sustainable growth, openness and disclosure, and transparency are fundamental to good regulation. Sustainable growth highlights the importance of creating a regulatory environment that allows financial institutions to thrive over the long term while maintaining stability in the financial markets. Openness and disclosure ensure that stakeholders are well-informed and can participate fully in the financial system, fostering trust and accountability. Transparency is essential for regulators and firms alike; it allows for scrutiny and oversight, which ultimately enhances the integrity of the regulatory framework.

Thus, the correct choice indicates that standardization does not align with the core principles of good regulation as defined by the FCA and PRA, highlighting that while it can support regulatory objectives, it is not among the foundational principles that guide their regulatory practices.