In a dramatic move set to send shockwaves through the City of London, Reform UK has unveiled plans to strip the Financial Conduct Authority (FCA) of its power to regulate the banking sector if the party gains power.
The controversial proposal forms part of the party's broader assault on what it calls "the quango state," targeting the very foundations of Britain's financial regulatory framework. The policy would represent the most significant shake-up of City regulation in a generation.
A Radical Overhaul of Financial Oversight
Under Reform UK's plans, the FCA would lose its authority to oversee banking operations, with these powers potentially being redirected to other bodies or scrapped altogether. The party argues that excessive regulation has stifled innovation and competitiveness in the UK's financial services industry.
This bold manifesto commitment places Reform UK squarely at odds with both the Conservative and Labour parties, who have largely supported the current regulatory structure established after the 2008 financial crisis.
The Post-Brexit Regulatory Landscape
The proposal taps into ongoing debates about how Britain should reshape its financial regulations following its departure from the European Union. Many in the financial sector have called for smarter regulation rather than wholesale dismantlement of oversight bodies.
Banking executives and financial experts have expressed mixed reactions to the announcement. While some welcome the prospect of reduced regulatory burden, others fear that weakening the FCA could undermine market stability and consumer confidence.
Potential Implications for the Financial Sector
If implemented, this policy could have far-reaching consequences for how banks operate in Britain. The FCA currently plays a crucial role in enforcing conduct rules, authorising financial services firms, and protecting consumers from malpractice.
The announcement comes amid growing scrutiny of Reform UK's policy platform as the party continues to gain traction in opinion polls. Financial markets will be watching closely to assess how these proposals might affect London's status as a global financial hub.
As the election campaign intensifies, the future of Britain's financial regulation has suddenly become a central battleground, with Reform UK positioning itself as the party of radical change in the City.
