Draft Bill and White Paper published detailing sweeping reforms to UK regulatory architecture
Today, the Government published a White Paper and draft Bill setting out its detailed blueprint for reform of financial regulation in the UK. The White Paper also poses further questions for consultation, and provides a summary of responses to the earlier consultation published in February.
The draft Bill will undergo 12 weeks of pre-legislative parliamentary scrutiny as soon as a scrutiny committee has been established. The consultation closes on 8 September 2011, and it is envisaged that the Bill will be introduced into Parliament before the end of this year.
This briefing provides an initial summary of key issues in the White Paper.
• Many of the Government's previous proposals have been taken forward into the draft legislation. Several new features have, however, been introduced, including:
• A new insurance objective for the PRA, requiring it to contribute to securing an appropriate degree of protection for those who are, or may become, policyholders.
• A new power for the FCA to require the OFT to consider whether structural barriers or other features of the market are creating competitive inefficiencies in specific markets.
• The proposed power for the FCA to order skilled persons reports will apply in respect of sponsors, as well as to issuers.