On 9 December, the Chancellor announced a series of regulatory reforms that are collectively designed to drive growth in the financial services sector and make the UK the world’s most innovative and competitive global financial centre.
The Edinburgh Reforms centre on government plans to seize the benefits of Brexit by setting out a detailed timeline for repealing and replacing EU retained laws governing financial services. The ultimate aim of the reforms is to deliver a smarter regulatory framework for the UK that is agile, less costly and more responsive to emerging trends.
A key element of the plan is a commitment to make substantial legislative progress over the course of 2023 on repealing and replacing Solvency II, the rules which govern insurers balance sheets. This reform is expected to unlock more than £100bn of private investment for productive assets such as UK infrastructure.
Speaking on the day of the announcement, Mr Hunt said, “We are committed to securing the UK’s status as one of the most open, dynamic and competitive financial services hubs in the world. The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.”
The Chancellor also reaffirmed the government’s commitment to implement changes to EU regulations in four other high growth industries – digital technology, life sciences, green industries and advanced manufacturing – by the end of this year.