The chancellor has promised lighter regulation in financial markets and pension fund consolidation in her first Mansion House speech, focusing on using savers’ cash to back the government’s growth plans.
Capital markets reforms took a back seat, however, despite a new Lord Mayor of the City of London pushing for pressure from the government for greater institutional support for local equities. There had been speculation around requirements for pension fund managers to invest in specific local assets, but Chancellor Rachel Reeves’ plans largely revolve around encouraging higher risk and return strategies from larger funds.
The regulation changes announced in the City speech include asking regulators such as the Financial Conduct Authority (FCA) and Prudential Regulation Committee to “ensure a greater focus on supporting economic growth”, and changes to the redress scheme run by the Financial Ombudsman Service. Within companies, Reeves said the FCA’s certification regime on non-senior staff would be lightened to cut costs for businesses.