Welcome to the UKGI weekly regulation update service for Aviva ABC brokers

Context

HM Treasury has published the details and a summary of the new Chancellor’s first Mansion House speech.  The main focus of the speech is to enhance the UK’s international competitiveness by making it “a global powerhouse for financial services” with a package of reforms, and that the UK’s status as a global financial centre cannot be taken for granted.

Key points to note and next actions

• Regulatory changes introduced post-financial crisis created a system which sought to eliminate risk taking which, although appropriate and necessary at the time, “has gone too far” and has led to unintended consequences.
• The SM&CR is cited as an example which, while helping to improve standards and accountability, have become over costly and administratively burdensome.
• As a result, the Treasury, the FCA and the PRA will publish the outcomes of a review including a commitment to consult on removing the current Certification Regime from legislation.
• Alongside other reforms and reviews, the Chancellor indicated that Government’s approach to financial services regulation is a key part of unlocking the potential for the growth of the UK economy, and a key test for regulation is whether it will make the economy more dynamic and more competitive.
• The Government will review the strategic guidance that it gives to the CMA and to other major regulators to underline the importance of growth, which includes the financial service regulators.
• The Chancellor announced that insurance markets are pivotal in supporting growth, so Government has published a consultation on captive insurance, where a new approach could cement the UK’s position as a leading financial services centre.