Government responds on regulatory perimeter

The Government has published its response to the Treasury Committee’s report on the regulatory perimeter and how it could be refined and should be policed. The report had criticised the lack of a formal system for FCA to ask for changes to the perimeter and noted the vulnerablities of the current system that allows grey areas between regulated and unregulated activities to be exploited.

The Government has promised action on some points, but does not see the case for giving FCA a formal power to request changes to the perimeter, saying this is monitored by and is the responsibility of Ministers, and that Treasury already has enough engagement with regulators.  The Treasury Committee finds this disappointing.