The UK launches review of regulating finance ahead of Brexit
The UK has launched a review into how regulation of finances could be improved particularly in relation the UK’s exit from the EU.
The UK has kicked off the first phase of the Financial Services Future Regulatory Framework review with a call for evidence to examine how co-ordination between the regulatory authorities could be improved.
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 co-ordinate the work of each regulator and limit unnecessary burden.
According to the government, 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 post-Brexit period.
"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," said City Minister John Glen.
"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 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 co-ordination between regulatory authorities.
The following phases 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.