An inquiry into the financial services reforms announced by the Chancellor of the Exchequer on 9 December 2022. The large numbers of announcements comprising the Edinburgh Reforms are wide-ranging and at different stages of the policy-formation process. The Committee will consider elements of the reforms as they progress in the full Committee, in the Sub-Committee …
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Second Report - Edinburgh Reforms One Year On: Has Anything… | HC 221 | 8 Dec 2023 | 18 | Responded |
The Sub-Committee agrees with the Treasury that the UK’s regulators should consider economic growth when designing new regulations, and the best way to promote economic growth in the UK is through a strong, well respected, independently regulated, and financially resilient financial services sector.
The Sub-Committee has raised concerns with the FCA about the risks to widening retail investment in Long-Term Asset Funds, since they are riskier non-liquid assets. These concerns are in part formed by our work looking into the failure of London Capital and Finance, and the role of promoters in potentially …
In our July 2023 report on venture capital funding we concluded that we were in favour of pension scheme consolidation where appropriate. Our view has not changed since. We therefore restate our conclusion on pension scheme consolidation in this report:
Our evidence suggests that UK pension funds may be an untapped source for a deeper domestic capital market more inclined to risk investment in high-potential businesses. We welcome the Government’s announcement of work on pension fund consolidation in the autumn. We will scrutinise the details of those proposals closely. Any …
The Sub-Committee remains sceptical that a government-approved monopoly for providing data to market participants through a consolidated tape is good for competition. Once a monopoly were granted, the incumbent would have little incentive to reduce costs or to innovate. Given the claimed benefits that a consolidated tape would provide to …
Based on the evidence the Sub-Committee has heard, there is the potential for small changes to the ring-fencing framework to improve its interoperability with the PRA’s resolution regime, but any longer-term plans to eventually remove the ring-fencing regime entirely should only be entertained once substantial evidence of what benefits this …
The continued viability of building societies and mutuals is of high importance to the Committee. A diverse, competitive and vibrant financial services sector is strengthened by the presence of mutuals and building societies.
Given that Parliament has expressed its will through the Mutual Deferred Shares Act 2015 that building societies should be able to raise finance through mutually deferred shares, the Committee expects the Government to address the lack of progress made on the secondary implementing legislation as part of its Edinburgh Reforms …
There is consensus among the Treasury, industry, and the Financial Conduct Authority that there are problems within the Packaged Retail and Insurance-based Investment Products (PRIIPS) regime in addition to a wider problem with cost disclosures. Such an example can be found with investment companies, where EU- derived regulation, since removed …
The Sub-Committee notes the proposed establishment of a Lord’s Committee on Financial Service Regulation. While its remit is a matter for the House of Lords, duplication of work should be avoided. The Sub-Committee will continue to carry out its scrutiny of new regulatory consultations as and when they are published. …
The Financial Services and Markets Act 2023 legislated for the creation of Cost Benefit (CBA) Panels dedicated to supporting the regulators in producing cost benefit analysis for each of their reforms. The Sub-Committee has consistently been of the view that the regulators’ cost benefit analysis did not capture the full …
| Date | Direction | Title |
|---|---|---|
| 24 Oct 2023 | — | Correspondence to the Chancellor of the Exchequer relating to progress with Edi… |
| 24 Oct 2023 | — | Correspondence from the Chancellor of the Exchequer relating to progress with E… |
| 7 Mar 2023 | — | Correspondence from the Economic Secretary to the Treasury, relating to the pub… |