Fifth Report - The Future Framework for Regulation of Financial Services
Select Committee
Treasury Committee
HC 147
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
7 results
1
Recommendation
Acknowledged
Para 27
We agree with the Treasury that the body of EU financial services rules that was...
Recommendation
We agree with the Treasury that the body of EU financial services rules that was on- shored during the process of leaving the EU should be moved into the regulators’ rule books. Keeping rules in statute could require Parliament to …
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Government Response Summary
The government notes the Committee's view on moving EU financial services law to regulators' rulebooks and reaffirms its own proposed approach. It does not explicitly address the recommendation for providing required resources.
HM Treasury
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10
Recommendation
Acknowledged
Para 56
Decisions by the Financial Ombudsman Service set precedents and form a critical part of the...
Recommendation
Decisions by the Financial Ombudsman Service set precedents and form a critical part of the consumer conduct-focussed element of the regulatory environment for financial services in the UK. Given that the aim of the Treasury’s consultation is to create a …
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Government Response Summary
The government acknowledged the recommendation, stating that they and the Ombudsman Service are currently considering whether any changes to existing arrangements are needed to ensure fair redress and awareness of wider implications.
HM Treasury
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11
Conclusion
Acknowledged
If Parliament itself is to play a role in the setting the regulatory principles of...
Conclusion
If Parliament itself is to play a role in the setting the regulatory principles of the FCA, it needs to be satisfied that the principles which it has set the FCA are not being undermined by decisions by the Financial …
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Government Response Summary
The government acknowledges the concern that Financial Ombudsman Service decisions should not undermine regulatory principles. They are currently considering whether any changes to existing arrangements are needed to ensure fair redress.
HM Treasury
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13
Conclusion
Acknowledged
Para 78
We believe that effective scrutiny of regulatory proposals should be carried out through a targeted...
Conclusion
We believe that effective scrutiny of regulatory proposals should be carried out through a targeted approach. Each new proposal made by the Financial Conduct Authority or by the Prudential Regulatory Authority under the future financial services regulatory framework would be …
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Government Response Summary
The government welcomes the Committee's recommendation for a targeted approach to Parliamentary scrutiny of regulator activity, agreeing that it is an appropriate model.
HM Treasury
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14
Conclusion
Acknowledged
Para 85
We have set out above reasons why we do not believe that Parliament or its...
Conclusion
We have set out above reasons why we do not believe that Parliament or its committees need necessarily carry out detailed and comprehensive textual scrutiny for every new draft regulation or rule, although it would always be open to a …
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Government Response Summary
The government welcomes the Committee's recommendation that a targeted approach is the appropriate model for Parliamentary scrutiny of regulator activity.
HM Treasury
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15
Conclusion
Acknowledged
Para 86
We do not see a clear need for the creation of a new committee or...
Conclusion
We do not see a clear need for the creation of a new committee or a new independent body to carry out this work. It would seem a more efficient use of Parliamentary resources to use the structures that are …
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Government Response Summary
The Government notes the Committee's conclusion but states that the appropriate scrutiny structure for Parliament is a matter for Parliament itself to consider.
HM Treasury
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16
Conclusion
Acknowledged
Para 87
The creation of a new independent body to assess whether regulators were fulfilling their statutory...
Conclusion
The creation of a new independent body to assess whether regulators were fulfilling their statutory objectives would not remove the responsibility of this Committee to hold the regulators to account, and it would also add a further body to the …
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Government Response Summary
The government notes the committee's conclusion that a new independent body for assessing regulators is not needed, and reiterates that parliamentary scrutiny structure is a matter for Parliament.
HM Treasury
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