The consultation will close on February 9, 2022.
Accountability
Aside from the regulators taking on new powers, the government also seeks to change the way it works with regulators.
It will introduce a requirement for the PRA and the FCA to respond to the recommendations issued by HM Treasury, and a new power for the Treasury to require the regulators to review their existing rules where the government considers that it is in the public interest.
In addition it is proposing new accountability mechanisms requiring the regulators to consider the impact of exercising their powers to make rules.
It said: “Empowering the regulators to set the direct regulatory requirements will allow for the necessary evolution of the rulebook, in a way that maintains the UK’s high standards of regulation.
“Transferring that responsibility to the regulators will require the government to gradually repeal significant amounts of retained EU law so that the regulators can replace it with the appropriate regulatory requirements in their own rulebooks.
“These measures seek to ensure that, as the independent regulators take on more responsibility for regulatory policymaking under the proposed approach, they can continue to be held to account by Parliament and HM Treasury for how they are advancing their objectives.”
sonia.rach@ft.com
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