HM Treasury has published the speech delivered by George Osborne, Chancellor of the Exchequer, at the Mansion House on 12 June 2014. In his speech, Mr Osborne made announcements on issues including:
- extension of benchmarks regulation. The government intends to extend the powers put in place to regulate the London Interbank Offered Rate (LIBOR) to cover other major benchmarks across foreign exchange, commodity and fixed income markets, many of which are currently unregulated. The joint HM Treasury, Bank of England and FCA review into the operation of wholesale financial markets will provide conclusions on this issue. HM Treasury will then publish and consult on the full list of benchmarks to be covered by autumn 2014, with the aim of the new regime being in place by the end of 2014; and
- new Financial Policy Committee (FPC) powers over mortgages. The government intends to give the FPC new powers that will allow it to limit the proportion of high loan to income mortgages that each bank can lend or to ban all new lending above a specific loan to income ratio. The FPC will also be able to impose similar caps on loan to value (LTV) ratios.
The BoE and HM Treasury will consult on these new powers with the aim of the new legislation being place before May 2015.
View Mansion House 2014: speech by the Chancellor of the Exchequer, 12 June 2014