Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Britain dismisses talk of dumbing down financial rules after Brexit

Economy Feb 08, 2022 12:48
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The City of London financial district is seen in London, Britain, October 22, 2021. REUTERS/Hannah McKay

By Huw Jones

LONDON (Reuters) - Britain's finance ministry will push ahead with implementing plans which require regulators to take into account of the financial sector's global competitiveness when writing rules.

A group of campaigners last week warned that the plans could make regulators "cheerleaders" for finance.

There is widespread backing in the sector for the Bank of England's Prudential (LON:PRU) Regulation Authority and Financial Conduct Authority to have a secondary objective of helping the City of London stay competitive globally, a remit many regulators across the world already have.

"The government therefore intends to provide for a greater focus on growth and international competitiveness through the introduction of secondary objectives for the PRA and FCA," Rohan Lee, deputy director for financial services strategy at the ministry told a City & Financial conference.

"This will increase the regulators' focus on supporting the UK's financial services sector without jeopardising the financial stability that underpins it."

The ministry will also have powers to require regulators to rethink existing rules, and there will be a new panel to require regulators to show the costs and benefits of proposed rules, Lee said, steps which critics say could crimp the independence of regulators.

The finance ministry is expected to set out legislative proposals this year to replace "significant amounts" of EU financial laws with rules from UK regulators.

"It will take some years to bring this to fruition," Lee said.

Britain's financial sector has been largely cut off from the EU since it left the bloc, and Brussels signalled on Tuesday it would cut access further in clearing euro derivatives.

Britain has already eased listing rules and the ministry is due to set out plans to make capital markets more attractive, though financial industry officials want faster action as the EU reforms its own rules more quickly.

The BoE has warned banks that a competitiveness objective will not mean a return to "light touch" supervision seen before the global financial crisis.

Sarah Pritchard, the FCA's executive director for markets, said the watchdog would stick to "high international standards".

Charlotte Clark, director of regulation at the Association of British Insurers, said it was unclear what happens if the cost/benefit panel said no to planned rules in the trade off between keeping markets safe and boosting competitiveness.

Britain dismisses talk of dumbing down financial rules after Brexit
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email