Select committee: Treasury Committee
Conclusion 3
Second Report - Edinburgh Reforms One Year On: Has Anything Changed?
Published 8 Dec 2023
Paragraph 21
Addressed to HM Treasury
Treasury Committee The Edinburgh Reforms All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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 misusing exemptions for high net-worth individuals and so-called sophisticated investors, to garner greater sales. The Sub-Committee continues to have concerns in this area, and therefore about the protections the FCA is, in part, drawing upon for Long-term asset fund sales to a wider range of retail investors.
From: Treasury Committee, Second Report - Edinburgh Reforms One Year On: Has Anything Changed? (HC 221), paragraph 21, 8 December 2023
Government response
Fourth Special Report - Edinburgh Reforms One Year On: Has Anything Changed?: Further Government Response to the Committees Second Report Fourth
The government responded to the whole report on 26 April 2024 (deadline 8 February 2024).
Second Special Report - Edinburgh Reforms One Year On: Has Anything Changed? Government Response to the Committee’s Second Report
Published 21 February 2024.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government disagrees with "a number of the Report's conclusions" and says it is "squarely focused on delivery" of the Edinburgh Reforms.
- The Economic Secretary "particularly" rejects any suggestion that the reforms will not have a substantial impact on the UK economy and financial services competitiveness, or that they could be "responsibly delivered any faster".
- It "strongly agree[s]" with the Committee that reform should be evidence-based and involve consultation, and says the Treasury is "striving to balance" pace with "appropriate time for consultation and implementation".
- It states that, as of 6 October, 21 of the 31 Edinburgh Reforms commitments "have been delivered", and lists further progress since the report, including the Digital Securities Sandbox Regulations laid on 18 December 2023.
- No new dated commitments are made; the Economic Secretary says he "remain[s] focused on delivering these reforms" and expresses confidence that they are promoting growth and competitiveness.