The UK government has announced a major overhaul of financial regulations, described as one of the biggest in more than three decades. The package of over 30 reforms aims to 'cut red tape' and 'turbocharge growth', including a review of rules that force banks to separate retail banking from riskier investment operations.
The reforms, dubbed the 'Edinburgh Reforms', are presented as a post-Brexit opportunity to tailor regulation to the UK economy. However, critics warn they risk forgetting lessons from the 2008 financial crisis, which cost taxpayers billions in bailouts.
Chancellor Jeremy Hunt said the changes would secure the UK's status as a leading financial hub, seizing on Brexit freedoms to create an agile regulatory regime. He met with banking bosses in Edinburgh to discuss the plans.
Labour's shadow City minister Tulip Siddiq criticised the reforms, saying they bring more risk and are part of a 'race to the bottom'. Green charity the Finance Innovation Lab also warned of dangers to economic stability.
Supporters, including Chris Hayward of the City of London Corporation, argue the reforms will not weaken standards and will boost growth. The changes also include scrapping the bankers' bonus cap and overhauling rules on senior executive accountability.
