HM Treasury Outlines Proposals to Improve Regulatory Coordination
HM Treasury published a document that sets out how the financial services regulators, working with the government, propose to improve regulatory coordination through the introduction of the Financial Services Regulatory Initiatives Forum and the Regulatory Initiatives Grid. It also provides further information on the next phase of the Financial Services Future Regulatory Framework Review. In addition, the document sets out responses received to the Call for Evidence on regulatory cooperation, the response period for which was open during July 19, 2019 to October 18, 2018. The Call for Evidence sought views from the financial services industry and other interested stakeholders on how HM Treasury and the regulators work together to coordinate and manage the overall impact of regulatory initiatives and how that coordination could be made more effective.
In July 2019, the government launched the Financial Services Future Regulatory Framework Review, a long-term review to consider how the UK’s regulatory framework needs to adapt over the coming years to be fit for the future. The first phase of this Review has been considering the specific issue of coordination between UK regulatory bodies with responsibility for financial services regulation, with the aim of improving the effectiveness of coordination in the future. The second phase of the Review will look at how financial services policy and regulation are made in the UK, including how stakeholders are involved in the process. The broader issues raised by responses to the call for evidence are, therefore, useful in developing the overall approach for the long-term framework in UK. In addition, the government’s forthcoming white paper on financial services will set out how the Review fits within the government’s vision for the future of financial services.
The results of the Call for Evidence, which received over 60 responses, suggest that the effectiveness of coordination could be enhanced. The response to Call for Evidence document summarizes the issues raised by respondents and explains how the regulators that are working with the HM Treasury propose to improve regulatory coordination in the short-term through the introduction of a new mechanism to manage the pipeline of new regulatory initiatives. The government wants to act now to begin improving the effectiveness of coordination arrangements. HM Treasury, therefore, asked the regulators to develop proposals that can be implemented quickly. In response, the regulators have proposed a new consolidated forward-look of upcoming regulatory initiatives. The proposal is designed to provide a more effective structure within which HM Treasury and the regulators can work together to identify and address any peaks in regulatory demands made on firms and to give stakeholders (including industry) a clearer picture of upcoming initiatives so they are better placed to plan for them.
This Regulatory Initiatives Grid, which is expected to be launched over the Summer, will provide an indicative two-year forward view of major upcoming regulatory initiatives affecting the financial services sector. The Grid will be published twice a year and will set out an indicative timetable for each regulatory initiative. For the sector, this will provide a clearer picture of expected regulatory activity, which should mean that firms will be better informed about initiatives that may affect their business, thus improving their ability to plan ahead. The Grid will be managed by a coordinating Forum: the Financial Services Regulatory Initiatives Forum, whose membership comprises BoE, PRA, FCA, Payment Systems Regulator, Competition and Markets Authority, and HM Treasury (as an observer member). Other bodies, such as the Information Commissioner’s Office (ICO), The Pensions Regulator (TPR), and Financial Reporting Council (FRC), will be invited to attend and contribute to the Grid on an ad hoc basis, if and when responsible for a major initiative affecting the sector.
Related Links
Keywords: Europe, UK, Banking, Insurance, Securities, Financial Services Regulatory Initiatives Forum, Regulatory Initiatives Grid, Regulatory Framework, Regulatory Coordination, FCA, HM Treasury
Previous Article
ECB Updates Annexes to the AnaCredit Reporting ManualNext Article
IAIS Issues Level 2 Document for ICS Version 2.0Related Articles
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
APRA Finalizes Guidance for New Prudential Standard on Remuneration
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
OCC Updated LIBOR Self-Assessment Tool for Banks
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
TCFD Updates Guidance for Financial Disclosures on Climate Risk
The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
BCBS Report Examines Progress on Adoption of Basel III Framework
The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.
ACPR Implements Updates Related to DPM Version 3.1
The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.
EBA Note Examines Transition Risks of Benchmark Rates
The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.
