HMT consultation – Financial Services Future Regulatory Framework Review
- On 19 October 2020, HM Treasury (HMT) presented to the UK Parliament its “Financial Services Future Regulatory Framework Review, Phase II Consultation” (reference code CP 305)
- This consultation marks the launch of the second phase of the Future Regulatory Framework (FRF) Review, which considers how the regulatory framework for UK financial services (FS) needs to adapt to be fit for the future outside of the EU
- In doing so, the key aim is to achieve an agile and coherent approach to financial services regulation in the UK, with appropriate democratic policy input to support a stable, innovative and world-leading financial services sector
- The consultation will remain open for three months, closing on 19 January 2021
- Chapter headings within the 46-page consultation paper include “the post-EU regulatory framework” and “accountability, scrutiny and stakeholder participation”
- This consultation is important for all organisations within UK financial services
Phase I of the review examined coordination between the UK authorities that have responsibility for regulation of and policy for the financial services sector. The UK government published its response on 11 March 2020, creating the Financial Services Regulatory Initiatives Grid and the Financial Services Regulatory Initiatives Forum.
This Phase II consultation seeks views on proposals and options for adapting the financial services regulatory framework following the UK’s departure from the EU. The proposed approach has the following main features:
- The UK’s regulators will be responsible for setting direct regulatory requirements on financial services firms and markets within the policy framework set by the UK’s Parliament and government.
- Accountability and scrutiny arrangements, particularly in relation to the financial services regulators, will need to be reviewed and, where appropriate, enhanced to reflect their expanded responsibilities.
- The consultation will also seek views on how to enhance broader stakeholder and public engagement with the policy making process of financial services, particularly in relation to the financial services regulators.
Timeline with relevant dates to be logged on regulatory calendar
- Consultation closes on 19 January 2021
Any respondents need to send their comments to HM Treasury. Please submit your responses to FRF.Review@hmtreasury.gov.uk
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