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Financial Services Update

23 June 2020

Proposing MP
Rishi Sunak Con
Richmond and Northallerton
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

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.
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