On 11 July 2023, HM Treasury published a Policy Paper ‘Building a Smarter Financial Services Regulatory Framework for the UK: HM Treasury’s Plan for Delivery’.

As part of the papers the government issued in its December 2022 Edinburgh Reforms was a Policy Paper ‘Building a smarter financial services framework for the UK’. The purpose of the Policy Paper was to set out the government’s plan to take forward the implementation of a comprehensive model of regulation based on the Financial Services and Markets Act 2000 (FSMA model). The Policy Paper now published describes how the government will deliver this approach in practice.

The Policy Paper states that the Chancellor’s 2023 Mansion House speech marks the beginning of the government’s repeal of retained EU law (REUL) in financial services following the passage of the Financial Services and Markets Act 2023. HM Treasury is commencing the repeal of REUL in a phased manner to ensure that industry is able to plan ahead. A table in the Policy Paper shows the government’s progress on the programme so far, including that announced by the Chancellor in his 2023 Mansion House speech, as well as a forward-look on tranches 1 and 2, as previously announced in December 2022. The table also includes the benefits anticipated for each area of legislation and when it is estimated that the legislation and any consultation responses will be available.

The Policy Paper also reports that HM Treasury is commencing the repeal of statutory restrictions which prevent the UK’s financial services regulators from making rules that modify the effect of REUL.