| Author (Corporate) | United Kingdom: House of Lords: Select Committee on the European Union |
|---|---|
| Publisher | The Stationery Office (TSO) |
| Series Title | 11th Report |
| Series Details | (2017-19)HL66 |
| Publication Date | 27/01/2018 |
| Content Type | Policy-making, Report |
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The EU Financial Affairs Sub-Committee of the United Kingdom House of Lords EU Committee issued a report on the 27 January 2018 called Brexit: the future of financial regulation and supervision. The report highlighted the risks of market fragmentation and instability if the UK and EU cannot agree a deal on market access once the UK has left the bloc. The Government must urgently clarify what outcome it wants from phase two of Brexit negotiations and on transitional arrangements, or firms will be forced to activate costly and potentially irreversible contingency plans. Key findings in report + International standards and EU law had shaped the UK's regulation of financial services. The UK heavily influenced these and it must continue to adhere to international standards and find a way to shape them in future, especially if there was a risk of them being undermined by other states. + Post-crisis reforms have promoted financial stability and the UK Government should continue to advocate these reforms, especially if faced with initiatives by the EU that would lead to market fragmentation and a rowing back on the post-crisis commitments, such as current proposals on potential central counterparty (CCP) relocation. + The translation of EU regulation into domestic law would need delicate handling by the Government. Some rules would need to be enshrined in statute. However, it may be more appropriate in some areas for regulators to issue guidance and set standards. Any future regulatory regime would likely result in a significant increase in the powers of domestic regulators. It was vital that Brexit, in transferring powers to domestic regulators, should not result in an unintended deficit in democratic scrutiny and accountability. |
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| Source Link | https://publications.parliament.uk/pa/ld201719/ldselect/ldeucom/66/66.pdf |
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| Subject Categories | Business and Industry |
| Countries / Regions | United Kingdom |
