The chancellor, Jeremy Hunt, has today vowed to make Britain one of the world's "most open, dynamic and competitive financial services hubs" as he set out sweeping reforms to the City that have been dubbed "Big Bang 2.0".
The 30-point plan was announced as he travelled to Edinburgh to meet a group of chief executives from banks and insurers, who the government hopes will be in a stronger position to grow and compete with international peers as a result of the deregulation drive.
The package, known as the Edinburgh Reforms, is wide-ranging, spanning from plans to consult on a new central bank digital currency to changing tax rules for investment trusts involved in real estate, and reforming rules around short selling – where investors bet that the price of an asset will drop.
It also includes plans to repeal rules introduced in the wake of the 2007-8 financial crisis, including the senior managers’ regime, which holds bosses personally and financially responsible for problems that occur on their watch, and the ringfencing rules that are intended to protect everyday customers by separating their deposits from riskier investment banking operations.
Hunt said: "We are committed to securing the UK’s status as one of the most open, dynamic and competitive financial services hubs in the world.”
"The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.”
"And we will go further – delivering reform of burdensome EU laws that choke off growth in other industries such as digital technology and life sciences."
The Edinburgh Reforms are listed below:
Reforming the Ring-Fencing Regime for Banks
Issuing new remit letters for the PRA and FCA with clear, targeted recommendations on growth and international competitiveness
Publishing the plan for repealing and reforming EU law using powers within the FSM Bill, building a smarter regulatory framework for the UK
Overhauling the UK’s regulation of prospectuses
Reforming the Securitisation Regulation
Repealing the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation, and consulting on a new direction for retail disclosure
Intending to repeal EU legislation on the European Long-Term Investment Fund (ELTIF), reflecting that the new UK Long-Term Asset Fund (LTAF) provides a better fund structure for the UK market
Launching a Call for Evidence on reforming the Short Selling Regulation
Publishing a draft Statutory Instrument to demonstrate how the new powers being taken forward in the FSM Bill will be used to ensure that the FCA has sufficient rulemaking powers over its retained EU payments legislation
Consulting on removing burdensome customer information requirements set out in the Payment Accounts Regulations 2015
Welcoming the PRA consultation on removing rules for the capital deduction of certain non-performing exposures held by banks
Bringing forward secondary legislation to implement Wholesale Markets Review reforms
Establishing an Accelerated Settlement Taskforce
Committing to establish the independent Investment Research Review
Commencing a review into reforming the Senior Managers & Certification Regime in Q1 2023
Committing to having a regime for a UK consolidated tape in place by 2024
Consulting on issuing new guidance on Local Government Pension Scheme asset pooling
Increasing the pace of consolidation in Defined Contribution pension schemes
From April 2023, improving the tax rules for Real Estate Investment Trusts
Announcing changes to the Building Societies Act 1986
Delivering the outcomes of the Secondary Capital Raising Review
Consulting on reform to the VAT treatment of fund management