On 20 September 2021, the Treasury Committee published the Government’s response to its report on the Future Regulatory Framework of Financial Services.

Key points in the response include:

  • The Government will bring forward detailed proposals in a second consultation in the autumn. Therefore the response does not go into detail as regards the Government’s views on the recommendations set out in the report.
  • The EU financial services rules that were on-shored during Brexit should be moved onto the regulator’s rulebooks. As set out in the Government’s previous consultation, the proposed approach is that the UK regulators should have responsibility for setting the direct regulatory requirements that apply to firms, operating within an overall policy framework set by the Government and Parliament.
  • The Government welcomes the report’s recommendation that a ‘targeted approach’ to scrutiny by Select Committees is the appropriate model for Parliamentary scrutiny of regulator activity, whereby the Committee should scrutinize the activities of the regulators in more detail where it considers there is a wider public interest in doing so.