Rishi Sunak, the UK Chancellor of the Exchequer, has reportedly unveiled a new post-Brexit financial strategy, one that would see Britain's post-Brexit financial regulatory framework place a stronger emphasis on growth and international competitiveness.
Sunak said the industry will benefit from a customized system, which the Treasury characterized as a ‘once-in-a-generation’ opportunity to overhaul the way one of the UK's largest business sectors are monitored and policed.
The suggestions call for the repeal of EU financial services legislation that was kept in place after Brexit but was no longer judged acceptable. It would be superseded by new regulations drafted by the Financial Conduct Authority as well as the Prudential Regulation Authority, UK’s two regulatory watchdogs.
As per the Treasury, the FCA as well as the PRA would still be tasked with safeguarding financial stability, but would also be given the additional task of stimulating growth.
Sunak feels that the government's capacity to create standards that are better suited to the demands of UK markets has been limited by Brussels' insistence on laws being obeyed. The EU's financial regulatory structure has no scope for making regulations commensurate with growth.
Financial services were not covered in the EU-Brexit agreement, and the administration seems to be under pressure to avoid business being lost to European cities such as Frankfurt, Paris, and Amsterdam.
The chancellor envisioned accessible, green, and technologically innovative financial industry that is competitive globally and acts in the best interest of community members and residents across the UK, creating more jobs, supporting businesses, and driving the market growth.
Sunak further claimed that as an independent country, it is important to have a cohesive, agile, and globally acknowledged framework for financial services regulation that is appropriate for the UK.
On a closing note, he added that the proposals would effectively support UK's future strength as an international financial center, providing an adaptable and dynamic regulatory framework that promotes the country’s economic growth while remaining true to its commitment to high global standards.