House of Commons · Written Ministerial Statement
Financial Services Update
23 June 2020 · Treasury
Proposed by Rishi Sunak Con Richmond and Northallerton
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The UK government plans to introduce updated prudential standards for financial services post-Brexit.
- The approach involves a flexible legislative method that empowers regulators to act while upholding high international standards.
- The government will review Solvency II and manage risks associated with the transition from LIBOR.
Issue summary
The statement addresses the UK's approach to regulatory reforms in financial services following Brexit.
Action requested
The government intends to introduce updated prudential standards through a flexible and proportionate legislative approach, delegating responsibility to regulators while maintaining high international standards. This includes updating investment firm regulations and credit institution rules, as well as reviewing certain features of Solvency II and managing risks related to LIBOR transition.
Key facts
- HM Treasury launched the Financial Services Future Regulatory Framework Review last year.
- The Government announced its intention to bring forward a Financial Services Bill in the Queen’s Speech on 19th December 2019.
- The UK played a pivotal role in designing EU financial services regulation and will tailor its approach to better suit the UK market post-Brexit.
- HM Treasury is considering how best to implement aspects of files that do not come into force until after the 31st December 2020, exercising discretion when implementing these files.
- The Government plans to bring forward a review of certain features of Solvency II in Autumn 2020.
- The UK will not be implementing the EU’s new settlement discipline regime or the reporting obligation for non-financial counterparties under the Securities Financing Transactions Regulation from January 2021.