Source · Select Committees · Treasury Committee
Fifth Report - The Future Framework for Regulation of Financial Services
Treasury Committee
HC 147
Published 6 July 2021
Government response
Fourth Special Report: The Future Framework for Regulation of Financial Services: Responses to the Committee’s Fifth Report · published 20 Sep 2021
Recommendations & Conclusions
2
Conclusion
Not Addressed
Para 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 …
Read more
Government Response Summary
The government noted the committee's view on EU on-shored law but did not directly address the conclusion regarding whether domestically-derived rules need to be included in the exercise of moving rules out of statute.
HM Treasury
View Details →
3
Recommendation
Not Addressed
Para 36
We understand the need for Treasury Ministers to be well informed of the regulators’ policy...
Recommendation
We understand the need for Treasury Ministers to be well informed of the regulators’ policy intentions as a matter of routine. However, we have not been provided with compelling evidence to justify changing the law to allow Ministers the absolute …
Read more
Government Response Summary
The government acknowledges the Committee's concerns that its proposals might damage regulatory independence, affirming the importance of independence and the need for balance. However, the response does not explicitly commit to refraining from changing the law as recommended.
HM Treasury
View Details →
4
Recommendation
Not Addressed
Para 37
The Treasury has in the past been able to delay policies in the interests of...
Recommendation
The Treasury has in the past been able to delay policies in the interests of the wider negotiations that took place during the UK’s departure from the EU. This suggests that there is already sufficient and appropriate Treasury oversight of …
Read more
Government Response Summary
The government acknowledges the Committee's concerns that its proposals might damage regulatory independence, affirming the importance of independence and the need for balance. However, the response does not explicitly commit to refraining from legislating for increased Treasury power.
HM Treasury
View Details →
5
Recommendation
Not Addressed
Para 38
If the Treasury does wish to give itself the formal power to see policy proposals...
Recommendation
If the Treasury does wish to give itself the formal power to see policy proposals before they are made public, comments or suggested changes to them using this power should be published alongside the public consultation.
Government Response Summary
The government acknowledges the committee's concerns about regulatory independence but does not address the specific recommendation to publish the Treasury's comments or suggested changes to policy proposals alongside public consultations.
HM Treasury
View Details →
17
Conclusion
Not Addressed
Para 88
Our Committee has been consistent in its regular monitoring of the work of the Financial...
Conclusion
Our Committee has been consistent in its regular monitoring of the work of the Financial Conduct Authority and of the Prudential Regulatory Authority, the extent to which they meet the objectives set for them by Parliament, and their responsiveness to …
Read more
Government Response Summary
The Government's response states that the structure for scrutiny is a matter for Parliament, which does not directly address the Committee's conclusion about the logic of aligning scrutiny of regulations and policy implementation.
HM Treasury
View Details →