Select committee: Treasury Committee
Recommendation 1
Fifth Report - The Future Framework for Regulation of Financial Services
Published 6 Jul 2021
Paragraph 27
Addressed to HM Treasury
Treasury Committee Future of Financial Services All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We agree with the Treasury that the body of EU financial services rules that was on- shored during the process of leaving the EU should be moved into the regulators’ rule books. Keeping rules in statute could require Parliament to amend or pass new legislation every time that the regulators wish to make changes to them. This would be resource-intensive and impractical. The regulators have a key role to play in designing and developing the rules with appropriate Parliamentary oversight. We acknowledge that the process of moving rules out of statute will be time-consuming for the regulators and will be a heavy demand on their resources. It is important that the required resources are provided to ensure this process takes place efficiently.
From: Treasury Committee, Fifth Report - The Future Framework for Regulation of Financial Services (HC 147), paragraph 27, 6 July 2021
Government response
The government responded to the whole report on 20 September 2021 (deadline 6 September 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government says it is considering the Committee's recommendations alongside the consultation responses and does not intend to respond to each in detail, as that "would pre-judge" a second consultation due in the autumn.
- The government "agrees with the Committee that the independence of the regulators is vital" and is "committed to preserving the regulators' operational independence".
- On moving on-shored EU law into regulators' rulebooks, it "notes" the Committee's view and says its proposed approach is that independent regulators set direct requirements within a policy framework set by government and Parliament.
- It "welcome[s]" the Committee's recommendation of a "targeted approach" to Select Committee scrutiny, and "notes" the Committee's conclusion on a new committee or body, saying structure of scrutiny is "rightly a matter for Parliament".
- It commits to bring forward "detailed proposals in a second consultation in the autumn".