City regulators set for fresh scrutiny as ministers push post-Brexit reforms

CHARLIE CONCHIE

MINISTERS are looking to strengthen their oversight of the City’s financial regulators as part of post-Brexit plans to rein in regulatory red tape and make sure they help drive economic growth.

The Treasury is planning to table an amendment to the landmark Financial Services and Markets Bill, currently making its way through parliament, which would strengthen the role of the central complaints body, the Financial Regulators Complaints Commissioner (FRCC), which oversees regulators, a government source told City A.M.

The FRCC allows firms to complain about decisions by the City’s key watchdogs, the Financial Conduct Authority, Prudential Regulation Authority and the Payments Systems Regulator.

Central to the plans will be allowing the Treasury to appoint the FRCC’s chief, rather than the regulators, to carve out more independence for the body from the regulators, the source told City A.M.

An annual report from the FRCC will also be given further weight and regulators will be required to answer where they have not fallen in line with the recommendations of the body.

The Financial Services and Markets Bill is scheduled to begin the report stage in the House of Lords on 6 June.

The move comes after a testy period between the government and City regulators. Moves by the Treasury to introduce so-called call in powers, which would have given ministers greater control over their decision making, provoked a backlash from regulators. Rishi Sunak eventually aborted the plans.

Plans to overhaul the role of the FRCC were first reported by the Sunday Times. The FCA declined to comment. The PSR and PRA did not immediately respond to requests for comment.

Further delays to self-driving rules could deter investment

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Autonomous vehicle regulation was initially announced by Boris Johnson’s government during the Queen’s Speech last May, but was postponed following a change of leadership. The industry has been warning since then that unless adequate legislation is passed before the next general election, investment in the sector could drop.

Ashley Feldman, programme manager for transport at the trade association TechUK, warned that

“any further legislative delay or false starts” in autonomous vehicle technology were likely to “send the wrong message to businesses and investors”.

The Department for Transport did not comment on the legislative delays, but said it is investing £100m over the next three years in UK firms “to explore the potential of this new technology”.

“The self-driving vehicle industry offers an exciting opportunity to create new jobs, make transport greener and safer, and grow the economy,” a spokesperson said.