Source · Select Committees · Treasury Committee
Recommendation 2
2
Paragraph: 28
The Treasury consultation alluded to certain UK-derived rules that are set out in UK statute,...
Conclusion
The Treasury consultation alluded to certain UK-derived rules that are set out in UK statute, and it suggested that regulators might be constrained as a result. But we found that the regulators did not appear to feel constrained by the existence of any domestic rules being set out in statute. We therefore conclude that while periodic review of domestically-derived rules to see whether they would fit better in rule books rather than in statute may be necessary, they do not need to be included in the exercise that moves the EU on-shored rules out of statute and into the regulators’ rule books.
Paragraph Reference:
28
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.