The government has announced plans to revoke EU financial services regulations and replace it with new rules which are "designed for the UK".
In
today's Queen's Speech, Prince Charles announced that the government
would bring in new legislation to "strengthen" the UK's financial
services industry and ensure it acts "in the interest of all people and
communities".
This will be achieved through a financial services and markets bill which will be introduced the coming year.
The
government has said the main benefits of the bill would consist of
"cutting red tape" to make the UK a more attractive place to invest and
do business while maintaining high standards.
As well as revoking
retained EU law, the government has said the bill will update the
objectives of the financial services regulators to "ensure a greater
focus on growth and international competitiveness" and will reform the
rules that regulate the UK's capital markets to promote investment.
It
will also introduce additional protections for those investing or using
financial products, to make it safer and support the victims of scams.
Among
the financial rules which might face the chop is Mifid II, which
includes a range of rules affecting advisers on cost and charge
disclosures. It also includes rules on product governance and target
markets.
The 10 per cent drop rule was also part of Mifid II, but this was put on hold during the Covid-19 pandemic and the FCA has already consulted on scrapping it.
The
government will also introduce a new economic crime and corporate
transparency bill which will introduce identity verification for people
who manage, own and control companies and other UK registered entities.
This
will be aimed at improving the accuracy of Companies House data, to
support business decisions and law enforcement investigations.
The
bill will also provide Companies House with more effective
investigation and enforcement powers and introducing better
cross-checking of data with other public and private sector bodies.
David
Postings, chief executive of UK Finance, said: "We strongly welcome the
announcement in the Queen’s Speech that the government will bring
forward a financial services bill and a further economic crime bill
which we see as two key pieces of legislation for financial services.
HM Government
© FT plc
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