Regulatory change is welcomed but recognition needed of challenges impacting the FS sector

The Chancellor last night (Thursday 19 July) announced a range of reforms to be delivered through a new Financial Services and Markets Bill in a bid to create a more competitive, green and technologically enabled financial services sector for the UK. Commenting, Isabelle Jenkins, Leader of Financial Services at PwC UK, said:

“For the UK to continue to succeed as a global financial center it must focus on openness, competitive markets, a robust regulatory framework as well as harnessing the potential of the green economy and technological change. It is welcome then that the Chancellor focused on these themes in his speech. 

“Much political debate at the moment is focused on economic growth and competitiveness, so it is unsurprising that the Chancellor, in addition to highlighting the Government’s commitment to tackling inflation, focused on the need for the financial services regulators to support this agenda. 

“It is clear that the sector is entering another period of intense regulatory change, as policy makers respond to a range of factors including Brexit, but also issues such as ESG and technological change.

“Many of the reforms the Government and regulators are working on are welcome. Giving insurers more flexibility to invest, streamlining markets and capital raising rules, and responding to crypto developments, will all bring benefits. But there also needs to be a recognition that at a time when the sector is dealing with so many other challenges, there is only so much change it can deal with in a short period of time.”