The UK's HM Treasury has published a consultation on the Future Regulatory Framework (FRF) Review.

As reported by our sister title, Insurance Asset Management, the FRF Review was established to consider how the financial services regulatory framework should adapt to be fit for the future, and in particular to reflect the UK’s new position outside of the EU.

In his speech at Mansion House on 1 July 2021, the Chancellor, Rishi Sunak, set out the government’s vision for an open, green and technologically advanced financial services sector that is globally competitive and acts in the interests of communities and citizens across the UK. Delivering the outcomes of the FRF Review is a key part of achieving this vision.

Responding to the consultation, ABI director general, Huw Evans, said: “The second consultation on the FRF Review has the right intentions towards creating a regime that is fit for purpose but it could have gone further.

“If the government wants the UK to compete on the global financial stage then we need a regulatory framework that matches the same vision. It’s disappointing to see the consultation published today recommends a new growth and international competitiveness objective that will only be a secondary objective for the PRA and FCA.

"This does not go far enough as regulators will always put primary objectives above secondary ones. We have a unique opportunity to boost competitiveness, attract overseas capital and promote the UK as a world-leading financial services hub, but unless regulators have economic growth as a primary objective, we are not convinced anything major will change.”

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