Second Special Report - Future of financial services regulation: responses to the Committee’s First Report

This is the government's response, published 7 September 2022.

Summary written by Accountability Index from the government's response. It is not the government's own words.

HM Treasury "notes" each of the Committee's recommendations, setting out the measures in the Financial Services and Markets Bill and, in places, explaining why it does not take the approach the Committee suggested.

• On secondary objectives, the government notes the recommendation and says Clause 24 of the FSM Bill implements new secondary objectives for the FCA and PRA on medium to long-term growth and competitiveness, subject to regulators "aligning with relevant international standards".
• On financial inclusion, it does not consider that a separate 'have regard' for the FCA "would lead to a different approach or tangible improvements over the current arrangements", noting that government already publishes an annual report.
• On a forward schedule for moving EU files to the rulebooks, it recognises that further information on the programme is important and "expects to set out further information in due course".
• On Treasury funding of rule reviews, it notes the recommendation and says the Bill requires the Treasury to 'have regard' to minimising the impact of a direction on the regulator's other functions. On CBA panels, it "does not agree" they would impact regulators' independence.

Read the government's response ↗ Report an error