Merge UK financial services regulators into one body, conservative think tank says

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Monday 08 August 2022 19:27

A new report from the centre-right Policy Exchange, founded by Michael Gove, said today that “meeting the demands” of multiple city regulators can be “a major impediment to innovation” for new businesses.

The government should consider merging several of the UK’s financial services regulators into one post-Brexit body, an influential Conservative think tank has said.

A new report from the centre-right Policy Exchange, founded by Michael Gove, said today that “meeting the demands” of multiple city regulators can be “a major impediment to innovation” for new businesses.

The think tank also said the creation of a single regulator would “enable greater accountability for regulatory performance” and lead to more talented people being given responsibility for regulating the sector.

The Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority are the UK’s two main financial services regulators.

However, the Competition and Markets Authority (CMA), the Pensions Regulator and the Payment Systems Regulator also play a role in regulating the city.

The report comes after the government recently introduced the Financial Services and Markets Bill, which creates a mechanism to scrap hundreds of EU rules and requires regulators to consider the UK’s international competitiveness. United when making new decisions.

An FCA source hit back at Policy Exchange and said the regulator would be “concerned about anything that restricts our ability to operate.”

“There are things we’ve done recently to show that we’re nimble and responsive to concerns, like quickly implementing changes to the registration regime,” they said.

A Treasury spokesperson said the current network of financial services watchdogs was “the most effective way to ensure clear and robust regulatory focus on macroprudential, microprudential, economic and conduct risk.”

“The government is committed to ensuring that the UK’s financial services regulatory framework is nimble and proportionate, supportive of innovation and long-term growth, while effectively vetting regulators for their respective and evolving files. “, they said.

The FCA, PRA and the pension regulator declined to comment.

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