The International Regulatory Strategy Group submitted a response to the HM Treasury Financial Services Future Regulatory Framework Review: Phase II Consultation.
The regulation and supervision of the UK’s
financial services sector has a significant impact on the ability of
firms to meet the needs of their customers, on the country’s position as
the leading global financial centre, and on the nation’s broader
economic and social wellbeing. The response points to the changing
context in which financial-services regulation operates and builds on
two reports published on the subject in 2017 and 2020.
The architecture for regulating finance after Brexit (2017)
The architecture for regulating finance after Brexit: Phase II (2020)
The
response highlights the need to develop a framework that recognises and
responds to three critical features of the post-EU landscape:
- a significant amount of power now transfers back to the UK regulators from EU bodies;
- this additional power needs to be balanced by appropriate accountability and scrutiny mechanisms;
- but these mechanisms must operate in a way that preserves the
day-to-day independence of the regulators and avoids undue
politicisation of processes
It sets out a number of options for improving the effectiveness
and efficiency of the UK’s regulatory framework which we hope would form
one part of a wider strategy on financial services.
We would like
to thank the members of the IRSG Architecture for regulating finance
workstream for their input into the submission and in particular
Linklaters LLP and M&G for their extensive work on these issues.
IRSG
© IRSG - International Regulatory Strategy Group
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