Review into the financial services regulatory framework launched
At Spring Statement, the Chancellor announced HM Treasury’s Future Regulatory Framework Review.
- First phase of the Financial Services Future Regulatory Framework review launched
- Call for evidence will look at how coordination between the regulatory authorities could be improved
- Future phases will look how the framework needs to adapt to UK leaving the EU
Plans to ensure the UK’s financial sector remains one of the best places in the world to do business have been set out by the government today (Friday 19 July).
Launching the call for evidence - the first phase of the Future Regulatory Framework Review - City minister John Glen said that the current regulatory system had ensured a financial services sector that was both safer and more competitive.
However, he added that we must continue to ensure that it enables innovation in the future.
The 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. It will look at whether more can be done to better coordinate the work of each regulator and limit unnecessary burden.
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 when UK leaves the EU.
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.
Our regulatory framework has played a vital role in encouraging competition while protecting consumers, and has made the UK one of the best places to invest and do business.
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 major, long-term review was first announced by the Chancellor, Philip Hammond, at 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 Chancellor yesterday held a summit with the financial regulators, where they committed to taking forward work to improve regulatory coordination alongside the call for evidence.
Future phases of the review will examine how the framework should adapt to the changing landscape after the UK has left the EU, once the details of the future relationship are clear.
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.