City minister John Glen outlines changes to ‘liberate businesses’ from EU regulations
City minister John Glen has said his changes to EU financial services regulations will “liberate businesses” in the UK as he further outlines his package of reforms.
Speaking to the Association of Financial Markets in Europe today, Glen said the post-Brexit changes “will remove unnecessary duplication and red tape for firms that want to raise capital” on wholesale financial markets.
The Treasury will this year bring forward a swathe of changes to the EU’s financial services rulebook in a bid to enhance the City’s competitiveness post-Brexit.
Last month, it was confirmed this would include easing Solvency II – a directive that makes insurance firms hold a certain amount of capital to ensure they can survive potential economic shocks.
Glen today said he would also dismantle the The Markets in Financial Instruments Directive (Mifid 2) to “reduce the onerous administrative burdens” City firms face.
The government said in November this would include abolishing the Share Trading Obligation, which restricts where shares can be traded.
The City minister said he would also slash red tape to ensure large firms, called Systematic Internalisers, no longer have to undertake regular accreditation checks.
This will go alongside scrapping the EU’s Derivatives Trading Obligation, which restricts where derivatives can be traded, and giving the Financial Conduct Authority (FCA) the resources to provide a broader range of market information for investors.
“In essence, these are common-sense, yet significant changes,” Glen said.
“They will liberate businesses from unwieldy and stifling rules that hold back their ability to grow and innovate.
“And they will make this country an even more attractive destination for firms that want to access capital.”