FCA urged promoting the city’s financial services sector overseas: CityAM

The Treasury Department plans to change the role of financial regulators to make sure they fuel the city’s global competitiveness.

Last year the Treasury Department launched a consultation on how the role of financial regulators should adapt after the UK leaves the EU. With the Treasury Department now planning to respond to the report in the fall, ministers have hinted that financial regulators may be required to incorporate the UK’s global position in financial services into policy decisions.

“Now that we have left the EU, it is right that we look at how the regulatory framework has to adapt in order to be sustainable,” said a spokesman for the finance ministry.

“We are working closely with the FCA and PRA to ensure that the UK remains an open, green and technologically advanced financial services sector based on high regulatory standards. We are examining the responses to our consultation and will publish a second consultation in the autumn, ”they confirmed.

It comes after City Secretary John Glen told financial services firms that regulators need to wake up and “smell the coffee” because of their role in increasing the competitiveness of the sector. At a private meeting, Glen called for a “restart” of the “relationship between the Treasury, Parliament and our regulators,” the Times reported for the first time.

According to the Times, the Treasury Department could make competitiveness an official part of UK regulators.

One option being considered is to make competitiveness a legal requirement for regulators like the Financial Conduct Authority and the Prudential Regulation Authority, which means regulators would need to incorporate such concerns into policy making.

In a less drastic approach, competitiveness could be a secondary regulatory principle behind consumer protection and fairness.

City firms have urged the government to make competitiveness a regulatory target as the UK financial services sector loses business in financial hubs in Europe and the US, and Amsterdam overtook London as the continent’s largest stock trading center in January.

Continue reading: MPs accuse the Financial Conduct Authority of being “unsuitable” after the British Steel pension debacle

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