The outcome of the UK election has left a great degree of uncertainty today, and that uncertainty extends to the future of financial services regulation. One certainty however, is that regardless of the outcome of the ongoing political discussions, the financial services sector will remain under intense scrutiny and subject to regulatory change.
All parties appear to be agreed on a range of matters relating to financial services, including tighter control and increased scrutiny over remuneration and consumer financial products, higher capital and liquidity requirements, bank taxes, increased competition in the banking sector and living wills. However, there are certain key areas, in particular the regulatory architecture and the future of the FSA, and the separation of investment banking activities from retail banking activities, where the parties substantially diverge.
Click here to access a comparative table of the main political parties' positions on the key areas of financial services regulation, which gives a sense of the likely direction of reform when the composition of Government is ultimately decided.