MPs to consider new financial services regulations post-Brexit

The inquiry will examine the risks and rewards of potential trading relationships with the EU and the rest of the world and whether the UK should maintain the current regulatory barriers that apply to third countries.

It will then make recommendations to the Government and regulators about what they should prioritise in future negotiations.

Nicky Morgan MP, chair of the Treasury Committee, said: “London is the world’s premier financial centre, and many of us want to keep it that way.

“Brexit will have a significant and long-lasting impact on the financial services sector, including the insurance, retail banking and asset management sectors, in the UK, the EU, and potentially the rest of the world.

“The UK may converge, seek equivalence, or diverge from the EU. As part of our new inquiry, the Treasury Committee will examine the risks and rewards of each of these choices.

“We’ll also explore the opportunities outside Brexit, such as fintech, on which we should be capitalising.

“After we’ve taken evidence from industry, regulators, ministers and officials, we’ll make a series of recommendations to the Government and regulators about what it should prioritise in negotiations with the EU and the rest of the world.

“We’ll also seek to conclude whether it would be in the long-term interests of the UK to align closely with EU financial rules, or to forgo financial services trade with the EU and pursue trade with other third countries.”

Stephen Jones, chief executive of UK Finance, commented: “The UK’s position as a world-leading financial centre post-Brexit is central to our economic and social prosperity. It is crucial that the government, Parliament, regulators and the industry all work closely together to preserve it.

“We must avoid fragmentation of global markets in which the UK is a leader, maintain strong and proportionate regulation whilst supporting innovation including in our critical fintech sector. We also need to ensure the UK’s tax policy is globally competitive.

“The UK is and should always seek to be the safest and most transparent place for financial service providers to do business, with an unwavering commitment to eliminating cyber and economic crime.”