Context
HM Treasury has published the Governments response to the Consultation “Financial Services Future Regulatory Framework Review: Proposals for Reform”.
Key points to note
This document provides a summary of the key themes raised by respondents in response to the questions in the consultation and notes the government’s final policy position on the Future Regulatory Framework Review reforms. The government is legislating for these reforms through the Financial Services and Markets (FSM) Bill and further detail is available in the accompanying Bill documents.
Topics covered within the Consultation response include:
- The Government’s approach to adding a new ‘growth and international competitiveness’ secondary objective for the PRA and the FCA (the insurance sector has repeatedly called for such an objective, but the fact that it will be a secondary objective falls short of their expectations)
- Whether the proposed HM Treasury power to require Regulators to review their rules offers an appropriate mechanism
- Proposals to strengthen the role of the panels in providing diverse stakeholder input into the development of policy and regulation
- The proposal to establish a new Designated Activities Regime to regulate certain activities outside of the Regulated Activities Order (which could capture a regime covering the approval of financial promotions)
Next actions
None – for information and awareness.