- 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 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, , 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, , 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.
