Source · Select Committees · Treasury Committee
Recommendation 1
1
Paragraph: 27
We agree with the Treasury that the body of EU financial services rules that was...
Conclusion
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.
Paragraph Reference:
27
Government Response
Acknowledged
HM Government
Acknowledged
Second, I note the Committee’s view that ‘the body of EU financial services law that was on-shored during the process of leaving the EU should be moved into the regulators’ rulebooks.’ As set out in the previous consultation, the government’s proposed approach is that the independent regulators should have responsibility for setting the direct regulatory requirements that apply to firms, operating within an overall policy framework set by government and Parliament. The government considers that this continues to be the most effective way of delivering a stable, fair and prosperous financial services sector.