On June 23, HM Treasury published a policy statement (the Statement) on its approach to legislating for the new prudential standards in the forthcoming Financial Services Bill (the Bill).

HM Treasury intends to use the Bill to implement prudential standards for banks and other credit institutions relating to the EU’s revised Capital Requirements Regulation (CRR II) and the new Investment Firms Prudential Regime (IFPR). According to the Statement, HM Treasury will delegate the responsibility for the implementation of the Bill for firms to the UK Prudential Regulation Authority and the UK Financial Conduct Authority.

HM Treasury aims to introduce the IFPR and updated prudential standards for credit institutions based on CRR II by summer 2021, subject to the timeline for the Bill to pass through Parliament.

For a more comprehensive discussion of this topic, please see this week’s Katten podcast, available here.

The Statement is available here.