Zahawi to slash EU red tape in Bill for City Brexit benefits

THE Treasury has unveiled a radical overhaul of City rules with plans to remove hundreds of pieces of Eu-era red tape.

Ministers will seek to boost the competitiveness of Britain’s financial services industry and unlock tens of billions of pounds of investment by repealing old Brussels rules that were initially adopted following Britain’s departure from the bloc.

Among the reforms in the Financial Services and Markets Bill are plans to cut “excessive” capital buffers for insurers that will allow them to invest in illiquid assets such as infrastructure. Financial regulators will be given a secondary objective to promote the global competitiveness of the financial sector, while ministers will also be given powers to “review” regulatory decisions.

The Bill also cracks down on financial scams, enshrines the right for vulnerable people and those in rural areas to have access to cash, and introduces rules for using stablecoins, a type of crypto asset, for payments.

The reforms were largely welcomed in the City although insurers said they were in talks with the Government and regulators about some of the proposals, which they fear will force life firms to hold more capital.