A victory for common sense - Treasury's Phase 2 review of the future regulatory framework for financial services

The BSA has warmly welcomed, and supports, HMT’s sensible proposals. 

Unnoticed among the run of other major world events, the Treasury's important consultation on the second phase of its review of the future of financial services regulation post-Brexit has drawn to a close after four months. The BSA has warmly welcomed, and supports, HMT’s sensible proposals. There are some very clear and obvious wins.

First: if it ain't broke, don't fix it. The UK's own model of regulation, under FSMA 2000, was exhaustively discussed, scrutinized, and legislated in 1997-2000 and has stood the test of time. Unlike the EU model, detailed regulation is left to expert independent regulators within a framework architecture clearly set out by Parliament. Now we are no longer bound by  the EU straitjacket it's the obvious choice for the UK: it’s home-grown, it works - what's not to like?

The second is to consolidate regulatory material, now originating both from on-shored EU material and domestic rulemaking, in a single corpus. We move on from what some have described as the alphabet soup of EU regulation: CRR, MiFID 1 and 2, DGSD, BRRD, ITS, RTS, EBA, XYZ (we made the last one up). As we said in our response, we recognise this cannot happen overnight, but it’s absolutely the right objective.

We have been lobbying for these two core proposals for a post-EU landscape since late 2016 so these proposals are a welcome victory for common sense.

You may also be interested in...

BSA Card
  • BSA.Event Event
  • Audit & Taxation

Risk, regulatory, audit and accounting seminar

After a successful in-person event in 2024, and responding to delegate feedback, this year's annual update will once again take place in Birmingham. ...

BSA Card
  • BSA.PressRelease Press Release
  • Savings

UK faces financial wellbeing crisis

New research by the Building Societies Association BSA), as part of UK Savings Week, reveals the ongoing cost-of-living pressures are not just hitting...

BSA Card
  • BSA.Event Event
  • Mortgages & Housing

Annual meet-up for mortgage professionals

The 2025 Annual Mortgage Meet-up will be taking place in London on Thursday 25th September. Exploring some of the biggest issues shaping the futu...

BSA Card
  • BSA.PressRelease Press Release
  • Mortgages & Housing

BSA responds to FCA Mortgage Rule Review

The review provides a timely opportunity to reshape the mortgage market to ensure it is fit for today’s borrowers, and those in the future.

BSA Card
  • BSA.IndustryResponse Industry Response
  • Mortgages & Housing

FCA Mortgage Rule Review DP25/2

We welcome the FCA's proactive approach and agree this is a timely and necessary review, particularly as the market navigates shifting economic condit...

BSA Card
  • BSA.PressRelease Press Release
  • Mortgages & Housing

No surprises as MPC holds Bank Rate at 4%

A further cut this year is still possible, but the outlook for the Bank Rate is now far less certain.

BSA Card
  • BSA.Event Event
  • Prudential Regulation

Preparing for successful regulatory visits

Two half-days on 28 & 29 January 2026

BSA Card
  • BSA.PressRelease Press Release
  • People

Building Societies Association appoints Sarah Harrison as new Chief Executive

Sarah will take up the role from 1 December.