The uk-eu relationship in financial services

The Committee agrees with the Government that, in the interests 
of flexibility, agility and proportionality, many of the regulations 
currently contained within primary legislation would be more 
appropriately managed by the regulators themselves. However, it is 
essential that this transfer of powers is accompanied by appropriate 
mechanisms for Parliament to scrutinise the regulators and hold them 
to account, and that the regulators are given sufficient resources to 
allow them to accommodate the increase in their workloads resulting 
from such a change.
161. 
The details of parliamentary scrutiny and accountability of the 
regulators are a matter for Parliament, but we ask the Government to 
commit to facilitating the establishment of appropriate mechanisms 
as necessary.
Regulatory alignment and divergence
162. Beyond the general regulatory framework set out in the FRF, the Government 
has launched a number of reviews and consultations that seek to develop the 
regulation of the UK’s financial services in ways that support the Chancellor’s 
New chapter for financial services
(see Table 1).
200 The process by which regulators are dominated by, or become subservient to the interests, of the 
entities they are charged with overseeing.
201 
Q 86
202 
Q 57
203 
Q 103
204 
Q 42
205 Full time equivalent.
206 
Q 57
207 
Ibid.

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42
THE UK-EU RELATIONSHIP IN FINANCIAL SERVICES
Table 1: Status of selected UK financial services regulatory reforms, May 
2022
Regulatory Review
Status
Implementation
Future Regulatory 
Framework Review
208
Consultation on 
proposals closed 
February 2022.
Government analysis of the 
consultation is ongoing.
UK Wholesale 
Markets Review
209
Treasury 
responded to 
consultation in 
March 2022.
A number of changes scheduled 
‘when parliamentary time 
allows’.
Solvency II Review
210
Call for evidence 
concluded. 
Ongoing—a comprehensive 
reform package opened for 
consultation in April 2022. 
Reforms will be included in the 
forthcoming Financial Services 
and Markets Bill.
Review of Overseas 
Framework
211
Consultation 
concluded. 
Response 
published July 
2021.
Further consultation expected 
and assessment ongoing. 
UK regulatory 
approach to crypto 
assets and stablecoins
212
Consultation 
concluded March 
2021. Response 
published April 
2022.
Further specific consultation 
expected alongside legislation to 
bring specific stablecoins within 
the payments framework.
Fintech Strategic 
Review (Kalifa 
Review)
213
Review published 
February 2021.