Policy paper

Prudential standards in the Financial Services Bill: June Update

This policy statement provides detail on HM Treasury’s legislative approach for prudential standards in the Financial Services Bill. The statement also provides detail on how the government will tailor these prudential regimes to the specifics of the UK market.

Documents

Details

As part of the government’s update on the UK’s approach to preparing our financial sector and regulatory framework post-EU withdrawal, and in line with the Written Ministerial Statement published today, the government is today publishing a policy statement on prudential standards in the Financial Services Bill. The FCA is also today publishing a discussion paper in relation to the Investment Firms Prudential Regime (IFPR).

At the 11 March Budget, the government published its intention to update the prudential regime for banks to enable the implementation of Basel 3.1, a UK version of the second Capital Requirements Regulation (CRRII) and to introduce the IFPR. Today’s statement builds on the announcement at Budget and explains HM Treasury’s legislative approach to legislating prudential standards, including the introduction of a delegation and accountability framework for the UK regulators.

The statement also provides detail on how the government will tailor the prudential regimes to the specifics of the UK market.

Published 23 June 2020