Her Majesty's (HM) Treasury of the UK government launched a consultation on the Future Regulatory Framework Review, the feedback period for which will remain open until February 09, 2022. The consultation sets out proposals for adapting the UK regulatory framework for financial services to ensure that it remains fit for the future and to reflect the new position of UK outside the European Union (EU). The document also sets out the government response to the feedback received on the consultation on Phase II of the Future Regulatory Framework Review.
The consultation presents a series of proposals to deliver intended outcomes of the Future Regulatory Framework Review, building on strengths of the existing framework in UK. It proposes how the government intends to take forward its approach to the Future Regulatory Framework Review, including:
- Changes needed to the regulators’ statutory objectives and regulatory principles to ensure that the government’s priorities for the sector are fully reflected across the breadth of the regulators’ responsibilities
- Proposals to ensure that accountability, scrutiny, and engagement arrangements with HM Treasury, Parliament, and stakeholders are appropriate given the regulators’ responsibilities
- Proposed approach to transferring responsibility for designing and implementing the direct requirements that apply to firms in certain areas of retained EU law to the regulators within a system established by government and Parliament
The Future Regulatory Framework Review was announced June 20, 2019, with the objective of reviewing the financial services regulatory framework in UK to ensure it remains fit for the future. The Review provides an important opportunity to ensure that the UK maintains a coherent, agile, and internationally-respected approach to financial services regulation that delivers appropriate protections and promotes financial stability.
Comment Due Date: February 09, 2022
Keywords: Europe, UK, Banking, Insurance, Securities, Future Regulatory Framework, HM Treasury, BoE, PRA, FCA
Previous ArticleEBA Revises Guidelines on Recovery Plan Indicators Under BRRD
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.