Chancellor's 12 financial services reforms
Over the past 24 hours, coinciding with her Mansion House speech, Chancellor Rachel Reeves has announced at least 12 significant financial services reforms.
Her aim is to cut back on excessive and unnecessary regulation and drive growth in financial services.
She wants the regulators to do more to promote growth in the sector while retaining consumer protections.
She has already announced pension megafunds this week, aimed at 'unlocking' £80bn of investment by merging Local Government Pension Scheme assets and consolidate defined contribution schemes into megafunds.
Here’s a summary of the 12 new reforms on the way with links to relevant Treasury documents.
• Financial Services Growth and Competitiveness Strategy This call for evidence will inform the development of the financial services sector plan, a key part of the government’s modern industrial strategy.
• Pensions Investment Review: interim report This interim report sets out proposals the Treasury is consulting on to deliver scale and consolidation of the Defined Contribution (DC) market and the Local Government Pension Scheme in England and Wales (LGPS).
• Pensions Investment Review: interim report, consultations and evidence The Chancellor has launched a landmark pensions review. The first phase is focused on investment and the interim report of phase one has now been published.
• Pensions Investment Review: Unlocking the UK pensions market for growth This consultation sets out proposed reforms to deliver scale, accelerate consolidation and drive a focus on value over cost in the Defined Contribution (DC) workplace pensions market and explores other changes.
• Next steps for reforming the UK Markets in Financial Instruments Directive The Treasury plans further technical changes to its wholesale markets framework, as part of its broader set of capital markets reforms.
• Private Intermittent Securities and Capital Exchange System (PISCES): Consultation The consultation sets out the government’s proposal for an innovative new market that will allow private companies to scale and grow, and will boost the pipeline of future IPOs in the UK, the Treasury says.
• National Payments Vision The government has published the ‘National Payments Vision’, setting out its ambitions for the UK’s payments sector to deliver world-leading payments and support growth.
• Letters to the FCA and PRA requesting a report on the mutuals sector landscape Letters from the Economic Secretary to the Treasury to the CEOs of the FCA and PRA requesting a report on the current mutuals landscape.
• Credit Union Common Bond Reform This call for evidence seeks views on the merits of and considerations for changing the credit union common bond requirement for membership in Great Britain, under the Credit Unions Act 1979.
• Future regulatory regime for Environmental, Social, and Governance (ESG) ratings providers The government will build on reforms by previous Chancellor Jeremy Hunt to regulate the provision of ESG Ratings, where these assessments of ESG factors are used for investment decisions and influence.
• Captive insurance The government is consulting on the potential for a new approach to captive insurance companies, with the aim of supporting the competitiveness of the UK insurance sector.
• UK Green Taxonomy This consultation seeks to gather views on the value case for a UK Green Taxonomy as part of the UK’s wider sustainable finance framework.