Treasury and FCA discuss regulatory perimeter

The government has published a summary of the 15 December 2021 meeting between John Glen and Nikhil Rathi in which they discussed FCA’s Perimeter Report (published 21 October 2021).

The meeting focussed the topics raised in FCA’s report, including:

  • Funeral plans – FCA is working hard on processing approvals for funeral plan providers and intermediaries. Treasury and FCA agree that the right balance has to be struck between rigorous regulation, proportionality and appropriate protection for consumers;
  • BNPL – FCA’s priority is to regulate where there is consumer detriment or risk of detriment. Following its consultation, Treasury intends to set out next steps in early 2022;
  • Cryptoassets – FCA and Treasury agree that the UK needs to create a regulatory environment for cryptoassets in which firms can innovate responsibly, while crucially maintaining high regulatory standards and managing financial crime risks so that people can use new technologies reliably and safely;
  • ESG data and ratings – FCA notes there is support for the government’s work to consider bringing ESG ratings providers into the perimeter. Common baseline standards that support innovation will allow the UK to lead globally;
  • Extending SMCR – FCA’s view is that it is appropriate for SMCR to be extended to RIEs and CRAs.

Lucy Hadrill