Treasury consults on regulatory framework for financial services

HM Treasury has launched a consultation on the launch of the second phase of the Future Regulatory Framework (FRF) Review.

The Review was established to determine how the overall approach to the regulation of financial services needs to adapt to the UK’s new position outside of the EU.  

There are two stages of the consultation: 

  • The first sets out an overall blueprint for financial services regulation, focusing on the split of responsibilities between Parliament, the Government and the financial services regulators. 
  • A second, taking place next year, will set out a final package of proposals and how they will be delivered. 

The Government sees the UK’s departure from the EU as an opportunity to review the framework arrangements and ensure that we have an overall approach to regulation of financial services which is right for the UK, building on the strengths of the Financial Services and Markets Act 2000 (FSMA) model. 

The consultation proposes a blueprint for the future regulatory framework which includes a number of key elements including:  

  1. The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) will be responsible for designing and implementing the regulatory standards that apply to financial services firms and markets using their existing rule-making powers in FSMA. As much as possible, this should result in one coherent source of regulatory requirements for firms –the regulators’rulebooks. This will involve the transfer of regulatory requirements in onshored legislation to the regulators. It will also offer an opportunity to review and rationalise some areas of non-EU derived financial services legislation. 

The BVRLA welcomes the opportunity to comment on these proposals and will be submitting a response. Those interested in contributing should email [email protected]

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