Link(s): | Statement made by Jeremy Hunt, the Chancellor of the Exchequer – UK Parliament Financial Services and Markets Bill (parliament.uk) |
Context
In what has been termed the “Edinburgh Reforms”, the Chancellor of the Exchequer, Jeremy Hunt, has expanded on plans for the growth of the UK financial services sector, building on the reform agenda the government is taking forward through the Financial Services and Markets (FSM) Bill. He has set out a collection of reforms “taking forward the government’s vision for an open, sustainable, and technologically advanced financial services sector that is globally competitive and acts in the interests of communities and citizens”, aimed at creating jobs, supporting businesses and promoting growth.
Key points to note
Among the components of the strategy is a review of the Senior Managers & Certification Regime, which is due to commence in Q1 2023. The review will be launched with a Call for Evidence, with the government looking at the legislative framework of the regime. The FCA and PRA will be responsible for reviewing the regulatory framework, which is expected to commence with a Discussion Paper.
The government is also looking to ensure the financial system plays a major role in the delivery of the UK’s net-zero target, with an updated Green Finance Strategy to be published early 2023 and a consultation on bringing Environmental, Social, and Governance (ESG) ratings providers into the regulatory perimeter.
Additionally, the government also states a commitment to working with the FCA to examine the boundary between regulated financial advice and financial guidance, with the objective of improving access to helpful support, information and advice, while maintaining strong protections for consumers.
Next actions
None – for information and awareness.