British Economy Secretary Jeremy Hunt provided details on Friday of a package of reforms to UK financial regulation that would reduce “red tape” and “boost the country’s growth.”
During an event organized by the Financial Times, Hunt defended the 30 reforms announced, which ease some of the measures introduced after the outbreak of the financial crisis in 2008. According to the new government's plans, they will end for some time. To the limits imposed after the credit crisis between its investment and retail activities, in order to facilitate its operations.
This would, as previously advanced by the Executive, “liberate” entities “without significant investment activities” that are now hampered by these requirements. The package of changes, known as the “Edinburgh reforms”, is presented as an example of post-Brexit freedom to create regulation tailored to the needs and strengths of the UK economy.
However, critics of this reform plan believe that it jeopardizes the lessons learned from the 2008 financial crisis. Under the reforms, the cap on bankers' bonuses will be removed and insurance companies will be allowed to invest in long-term assets, such as housing. And wind farms to boost investment.
The rules governing how senior financial executives are appointed, supervised and disciplined will also be changed. Hunt said today that the changes would ensure the UK's “position as one of the most open, dynamic and competitive financial centers in the world”.
The government has already announced that the reform package involves the “review, abolition and replacement” of several regulations inherited from the EU which, according to London, are slowing down the progress of the financial sector. The government will ask financial sector regulators – the Financial Conduct Authority and the Prudential Regulation Authority – in addition to ensuring consumer protection and preventing systemic risks, to strengthen measures that support competitiveness and growth.
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