Select committee: European Affairs Committee
Conclusion 12
1st Report - The UK-EU relationship in financial services
Published 23 Jun 2022
Paragraph 102
European Affairs Committee UK-EU relationship in financial services All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Contrary to the Committee’s expectations at the outset of this inquiry, we recognise now that the low number of equivalence decisions is not seen within the sector as a matter of fundamental concern. The sector has successfully adapted to operating without equivalence and sees limited benefit now in making further adaptions to accommodate it. We also recognise that the EU currently seems unlikely to grant further equivalence decisions without the UK constraining its regulatory flexibility and ability to diverge.
From: European Affairs Committee, 1st Report - The UK-EU relationship in financial services, paragraph 102, 23 June 2022
Government response
The government responded to the whole report on 13 October 2022 (deadline 23 August 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the Committee's report and, in response, mainly sets out existing and planned measures, while noting rather than accepting several conclusions and stating that it stands ready to sign the UK-EU Memorandum of Understanding once the EU side is ready.
- On the UK-EU Memorandum of Understanding on regulatory cooperation, the government "notes" the Committee's conclusions and says it is "ready to sign the MoU", but that further steps are required on the EU side. It agrees with the Committee on conclusion 20 that the MoU will be a valuable tool.
- On a minimum annual meeting with the European Commissioner, the government "notes" the conclusion and says it "remains committed to a position of openness and cooperation". It does not commit to annual meetings.
- The Financial Services and Markets Bill, introduced on 20 July, would introduce secondary growth and competitiveness objectives for the PRA and FCA, with annual reporting by the regulators on performance against them.
- On repealing retained EU law, the government says each repeal will only take effect once the Treasury lays a commencing Order, and only when replacement rules are in place. It says it "does not intend to pursue change for its own sake".