IRSG response to Government's financial services future regulatory framework

On 1 April 2022, the International Regulatory Strategy Group (IRSG) issued its response to the final phase of the Government’s consultation on the UK’s future regulatory framework. The IRSG response to this phase of the consultation builds on points from that report and a follow-up report produced in 2020. In addition to responding to the specific questions the IRSG make a number of points including that the process of transferring onshored legislation to regulators’ rulebooks need to observe the same objectives of ensuring continuity and certainty unless there is an intention to change policy. It also makes the point that the way EU law has been onshored means there are no consolidated versions of the rules available, which makes them very difficult for market participants to read. The IRSG therefore recommends that HM Treasury’s proposals for changes to legislation should be carried out with sufficient consultation and time to allow industry participants to adapt accordingly. Changes to legislation should include (as an annex) full marked up text, in the way the FCA typically present clear mark-ups to their Handbook text. This would improve accessibility, make reviews of proposed changes much more focused and efficient, enhance clarity and certainty around what is proposed, enable industry to better focus its energy, and could streamline the overall process.