The FCA and sister regulators have this week published a detailed ‘Regulatory Grid’ outlining revised plans for the next 24 months to allow for the Chancellor’s ‘Edinburgh Reforms’ to be included.
The new regulatory pipeline for the next two years sets out the watchdogs’ timetable for initiatives and reviews.
The plans were due to be published in November but delayed to allow the Chancellor’s Edinburgh Reforms, announced in December, to be incorporated.
The Chancellor Jeremy Hunt announced in December a package of 30 reforms, including the scrapping of PRIIPs rules, as part of a post-Brexit shake-up of financial regulation.
The Chancellor said his ‘Edinburgh Reforms’ will improve competition and growth post-Brexit by getting rid or or scaling back unnecessary legislation.
Mr Hunt wants 30 reforms of financial regulation and wrote to Parliament, the FCA and other regulators and bodies to outline his plans.
Among the key reforms are:
- Repealing the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation, and consulting on a new direction for retail disclosure
- Issuing new remit letters for the PRA and FCA with clear, targeted recommendations on growth and international competitiveness
- Publishing a plan for repealing and reforming EU law using powers within the Financial Services and Markets to build a ‘smarter regulatory framework’ for the UK
- Commencing a review into reforming the Senior Managers & Certification Regime in Q1 2023
- From April 2023, improving the tax rules for Real Estate Investment Trusts
- Consulting on reform to the VAT treatment of fund management
The updated Regulatory Grid from the Financial Services Regulatory Initiatives Forum sets out the revamped “regulatory pipeline” including the reforms.
Among the key ‘Grid’ changes are:
• A Streamlined Regime for stocks and shares ISAs: policy statement, final rules and guidance to be published Q2
• The Consumer Duty will come into force for products open to sale or renewal at the end of July
• The Consumer Duty comes into force for closed products at the end of July 2024
In addition, the pipeline sets out a major review of the Senior Managers and Certification Regime (SM&CR). The Government and regulators will launch the review of the SM&CR in the first quarter of this year with a Call for Evidence and the FCA and PRA will issue a joint Discussion Paper. The review will look at views on the regime’s effectiveness. Next steps on legislative or regulatory change will be dependent on findings.
The FCA says the Grid, which it aims to publish twice a year, enables the financial services sector and and other stakeholders to understand and plan for regulatory initiatives that may have a “significant operational impact on them.” The Grid includes details of plans from other sister regulators to the FCA and joint regulatory plans.
The Financial Services Regulatory Initiatives Forum, which publishes the Grid, was launched to strengthen coordination between members. It includes representatives of the Bank of England, Financial Conduct Authority, Prudential Regulation Authority, Payment Systems Regulator, the Competition and Markets Authority, the Information Commissioner’s Office, The Pensions Regulator and the Financial Reporting Council. The Treasury is an observer member.
The FCA adds that there may be an update to the Grid after the Financial Services and Markets Bill, currently going through Parliament, receives Royal Assent.
• The grid can be viewed here: Regulatory Grid. The FCA has also published the Grid in the form of an interactive dashboard and an Excel spreadsheet. Feedback on the grid can be sent to: This email address is being protected from spambots. You need JavaScript enabled to view it..
