The UK government has announced a sweeping overhaul of financial regulation, described as one of the biggest in over 30 years. The package, known as the Edinburgh Reforms, includes more than 30 measures aimed at cutting red tape and boosting economic growth.
Key changes include a review of rules that force banks to separate retail banking from riskier investment operations, introduced after the 2008 financial crisis. The government also plans to scrap the cap on bankers' bonuses and allow insurance companies to invest in long-term assets like housing and windfarms.
Chancellor Jeremy Hunt said the reforms would secure the UK's status as a leading financial hub, leveraging post-Brexit freedoms to create a tailored regulatory regime. However, critics warn the changes risk forgetting the lessons of the crisis, which cost taxpayers £36.4 billion in bailouts.
Labour's shadow City minister Tulip Siddiq called the reforms 'beyond misguided' and part of a 'race to the bottom'. The Finance Innovation Lab said weakening protections was 'an incredibly dangerous move'.
City of London Corporation policy chairman Chris Hayward defended the reforms, saying they would not weaken standards and offered a chance to grow the economy. The changes also include overhauling rules on senior finance executive hiring and securitisation.
