On 6 July 2021, the House of Commons’ Treasury Committee published a report on The Future Framework for Regulation of Financial Services.
Among other things the Committee:
- Agrees with HM Treasury that the EU financial services rules that were on-shored during Brexit should be moved into the UK regulator’s rulebooks.
- Does not believe that there is compelling evidence for legislating to allow Ministers the absolute right to see the UK regulators’ policy proposals before they are published for consultation. The UK regulators must be free to choose what they share with HM Treasury.
- Acknowledges that there may be a role for the Government to use ‘activity based’ principles to instruct the UK regulators’ approach to specific business sectors, it recommends that the Government is sparing in this respect.
- Supports HM Treasury’s consultation to create a more coherent financial services regulatory framework, it recommends that HM Treasury consider how the decision-making processes of the Financial Ombudsman Service would interact with the future regulatory framework for the FCA.