Source · Select Committees · Treasury Committee
Recommendation 6
6
Paragraph: 49
It is not clear to what extent the Treasury wishes to implement activity-specific regulation.
Conclusion
It is not clear to what extent the Treasury wishes to implement activity-specific regulation. While the proposal is a key aspect of the Treasury’s future framework consultation, when we asked the Economic Secretary whether the Treasury The Future Framework for Regulation of Financial Services 27 intended to move more towards regulating by activity, he said it did not. We note, however, that the Financial Services Act 2021 already sets regulatory principles for the FCA to follow at an activity-based level in regulating investment firms, and it gives the Treasury a power under secondary legislation to specify further matters to which the FCA must have regard when regulating in this field. We conclude that the Treasury intends to pursue this policy irrespective of the findings of this consultation.
Paragraph Reference:
49
Government Response
Acknowledged
HM Government
Acknowledged
The government is considering the recommendations made by the Committee, alongside the responses to the Financial Services Future Regulatory Framework Review Consultation, which closed on 19 February 2021. The government will bring forward detailed proposals in a second consultation in the autumn. I therefore do not intend to respond in detail to each recommendation in this letter, as doing so would pre-judge that consultation. However, having noted your recommendations with interest, I would like to take this opportunity to reiterate some of the points I raised during my evidence session with the Committee.