UK Financial Services Regulation to Diverge from EU Rules

Published / Last Updated on 11/11/2021

The government has today issued a consultation paper called “The Financial Services Future Regulatory Framework Review: Proposals for Reform”. 

In the paper, the government has set out its plans for the future regulatory framework in the UK.  There are no plans to disrupt the current EU equivalency of rules and regulations but the government is looking to build up the regulatory powers of both the Financial Conduct Authority (FCA) for the financial services industry as a whole but also the Prudential Regulation Authority (PRA) and part of the Bank of England that also overseas the financial strength and capital adequacy of banks and the banking system.

In issuing the consultation paper, Rishi Sunak (Chancellor) has urged the UK financial services industry to grab the opportunity and make the UK the strongest and most innovative financial services industry in the World to attract investment and financial trade to the UK.

The paper aims to sperate the FCA and PRAs responsibilities rather than having cross over areas that they both regulate in connection with the banking system.

In addition to promoting the advancement of UK financial services sector, regulators will be tasked with more responsibility in connection with malpractice.

Comment

May we suggest both government and regulators get financial services, the UK’s biggest export, to be included in the Brexit Trade Agreement rather than the “wishy washy” Memorandums of Understanding (MOUs), i.e. agreements to try and reach an agreement that are in place and totally worthless today.  Not one financial services firm both in UK and EU knows what they can and cannot do at present leaving expats both in UK and EU with financial interests in the other totally ‘in the dark’ and potentially hamstrung.

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