Regulatory framework for financial services out for review
22 Jul 2019
The Treasury has announced the first phase of a review into the future regulatory framework for financial services, starting with a three-month consultation looking at how co-ordination between regulatory authorities could be improved only months before potential Brexit departure
22 Jul 2019
This major, long-term review was first announced by Chancellor Philip Hammond in the Spring Statement and reiterated last month in his speech at Mansion House, where he said the review would deliver a regulatory system that protected customers while maintaining the highest standards.
The initial call for evidence is the first phase in a number of planned interventions by the Treasury to determine the long-term effectiveness of the regulatory regime, particularly in the light of changes post-Brexit.
Going forward, the wider review will take stock of the overall approach to regulation of the financial services sector, including how the regulatory framework may need to adapt in the future, particularly in relation to the changing landscape after the UK leaves the EU, once the details of the future relationship are clear.
City Minister, John Glen, said: ‘The UK’s financial services sector is vital to our economy, and I want to make sure it endures in the future – innovative, competitive and safe from shocks like those we saw during the financial crash.
‘It is now right that we step back to look at how the system is working more widely and what changes may be needed in the future to adapt to the UK’s new position outside of the EU, whilst maintaining the strengths of our current framework, including our world leading independent regulators.’
The review invites submissions on the first phase, which will look at how the overall impact of regulatory change on the financial services firms and their customers is managed, including coordination between regulatory authorities.
These include the Financial Conduct Authority, Prudential Regulation Authority, Bank of England, the Payments Systems Regulator and the Competition and Markets Authority.
The consultation closes on 18 October.
Pat Sweet | 22-07-2019