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Treasury Sub-Committee’s work so far on financial services regulations

21 December 2022

The Treasury Sub-Committee on Financial Services Regulations publishes a report detailing its work to date.

The Sub-Committee was established in June to examine changes to regulatory proposals. It scrutinises proposals which are open for consultation from the Financial Conduct Authority (FCA), the Bank of England, the Prudential Regulation Authority (PRA) and the Payment Systems Regulator (PSR).

The report outlines how the Sub-Committee scrutinises proposals, which proposals have been examined since its establishment, and its working methods.

The Sub-Committee has so far held hearings on proposals to mandate banks to reimburse victims of authorised push-payment scams, and on changes to bank and building society capital requirements as part of the PRA’s ‘Strong and Simple Framework’. It has conducted scrutiny of a number of other proposals through written correspondence.

The Sub-Committee this month wrote to the PRA on its review of Solvency II, which would change the reporting requirements required from firms. It also wrote to the FCA on plans to tighten regulations around sustainability labelling - which would raise the criteria an investment fund needs to meet before it can describe itself as ‘sustainable’ - and on proposals to broaden access to financial advice.

Commenting on the report, Harriett Baldwin MP, Chair of the Treasury Sub-Committee on Financial Services Regulations, said:

“With the UK’s financial regulators gaining greater powers since our exit from the European Union, and with the Government keen to make the most of the new opportunities this has brought, our Sub-Committee is conducting vital scrutiny of proposed regulatory changes in Westminster, rather than in Brussels.”

Further information

Image: Pixabay/Albrecht Fietz