Future of Financial Services

Treasury Committee Closed Inquiry
Opened: 20 Nov 2020 Closed: 1 Nov 2022 Parliament page
This inquiry will look at the future of financial services after the Brexit transition period ends. It will examine how financial services regulations should be set and scrutinised by Parliament, as EU directives will cease to govern new rules and regulations. It will also consider how regulators are funded and … Read more
13 Recommendations
32 Conclusions
3 Reports
5 Letters
9 Events
Activity timeline 19 events
7 Sep
2022
Report published
6 Sep
2022
Correspondence
23 Jun
2022
Report published
16 Jun
2022
Report published
25 Apr
2022
Correspondence
25 Apr
2022
Correspondence
10 Mar
2022
Correspondence
2 Mar
2022
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
21 Feb
2022
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
17 Jan
2022
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
6 Dec
2021
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
25 Oct
2021
Formal meeting (oral evidence session) · Room 5, Palace of Westminster
Recommendations & Conclusions
6 results
Clear
5 Conclusion Accepted
First Report - Future of financial…
Deregulation or simplification will in themselves impose costs on industry in the short term.
Deregulation or simplification will in themselves impose costs on industry in the short term. Regulators should make every effort to limit the costs of compliance with the rules, for example by communicating planned changes in advance, grouping sets of changes … Read more
Government Response
The FCA seeks to balance costs imposed on firms with delivering a strong system of regulation, prioritises work based on evidence of consumer harm or risks to market integrity, and makes use of cost benefit analysis and post-implementation reviews.
HM Treasury
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8 Recommendation Accepted
First Report - Future of financial…
We recommend that there should be a secondary objective for both the Financial Conduct Authority...
We recommend that there should be a secondary objective for both the Financial Conduct Authority and the Prudential Regulation Authority to promote long-term economic growth. The wording will be crucial: pursuing international competitiveness in the short term is unlikely to … Read more
Government Response
The government has implemented new secondary objectives for the FCA and PRA to focus on medium to long-term growth and competitiveness, while maintaining high regulatory standards.
HM Treasury
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12 Recommendation Accepted
First Report - Future of financial…
The FCA should make every effort to ensure that it is not designing or implementing...
The FCA should make every effort to ensure that it is not designing or implementing regulation in a way which could unreasonably limit the provision of financial services to consumers who might benefit from them. When placing new requirements on … Read more
Government Response
The government states that the FCA's existing objectives and regulatory principles are already well-aligned with financial inclusion objectives.
HM Treasury
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13 Recommendation Accepted
First Report - Future of financial…
We welcome the clearer acknowledgement that the FCA is working to support financial inclusion, and...
We welcome the clearer acknowledgement that the FCA is working to support financial inclusion, and we would urge the FCA to continue to do so. The FCA should provide an annual report to Parliament on the state of financial inclusion … Read more
Government Response
The government states that the FCA's existing objectives and regulatory principles are already well-aligned with financial inclusion objectives, and the government already publishes an annual report on financial inclusion.
HM Treasury
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19 Recommendation Accepted
First Report - Future of financial…
The information the FCA has made available on how it is performing against its service...
The information the FCA has made available on how it is performing against its service standards shows a deteriorating picture. The FCA has a reputation for being too slow in its authorisation work, and this will inevitably hold back British … Read more
Government Response
The FCA wrote to the Committee alongside the publication of their Annual Report and Operating Service Metrics and will keep the Committee updated on the progress made to reduce authorisation queues.
HM Treasury
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24 Recommendation Accepted
First Report - Future of financial…
The FCA should investigate whether there are more opportunities to enable larger firms to undertake...
The FCA should investigate whether there are more opportunities to enable larger firms to undertake controlled, supervised experiments with innovative products. For example, it may be desirable to allow firms to be more experimental with the designs of new products, … Read more
Government Response
The FCA will explore using market innovation services to support more large firms in controlled testing of innovative products, with measured safeguards.
HM Treasury
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Government Response AI assessment · 25 of 13 classified
Accepted 6
Accepted in Part 2
Acknowledged 16
Deferred 1
Total 13 recs + 32 conclusions
Correspondence 5 letters
6 Sep 2022 To committee Letter from the Economic Secretary to the Treasury, relating to proposals for a “have regard” for financial inclusion for the Financial Conduct Authority, dated 25 July
Parliament page
25 Apr 2022 To committee Letter from the Economic Secretary to the Treasury, relating to the ‘Future of Financial Services’ session on 2 March regarding sanctions, dated 1 April
Parliament page
25 Apr 2022 To committee Letter from the Economic Secretary to the Treasury, relating to the ‘Future of Financial Services’ session on 2 March regarding financial services, dated 1 April
Parliament page
10 Mar 2022 To committee Letter from John Glen relating to sanctions following the Committee's evidence session on the ‘Future of financial services’, dated 4 March 2022
Parliament page
20 Oct 2021 To committee Letter from Lloyds following evidence given to TSC, regarding the future of financial services, dated 13 October 2021
Parliament page