Rees-Mogg hints government will merge financial services regulators

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Sunday 02 October 2022 18:46

It was reported during the Tory leadership race that Truss wanted to consolidate the Financial Conduct Authority (FCA), the Prudential Regulation Authority and the Bank of England’s Payment Systems Regulator into one body.

Jacob Rees-Mogg has hinted the government will merge UK financial services regulators, after the Prime Minister’s team discussed the move over the summer.

It was reported during the Tory leadership race that Truss wanted to consolidate the Financial Conduct Authority, the Prudential Regulation Authority and the Bank of England’s Payment Systems Regulator into one body.

It’s a move that earlier this year said centre-right think tank Policy Exchange would increase innovation in the City of London.

Asked about a possible merger at a Conservative Party conference event, the business secretary today said he could not comment on future announcements but hinted it was still on the cards.

“I’m sure the things promised on the campaign trail will be delivered,” Rees-Mogg said.

The government is in the process of passing the Post-Brexit Financial Services and Markets Bill through Parliament.

It contains mechanisms for the UK to drop EU city regulations and requires regulators to consider the city’s competitiveness when making new decisions.

Rees-Mogg suggested this could be amended to include merging regulators.

A Policy Exchange report this year said having a single financial services regulator would “enable greater accountability for regulatory performance” and lead to “more talented people charged with regulating the sector”.

Regulators have indicated in the past that they would oppose any changes to the current arrangement, which was created after the 2008 financial crisis.

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