Mazars’ regulatory radar – Q2 2021

Following the G7 Summit in June, policy development on climate risk and sustainable finance more broadly remains a key area of focus for regulators at the Global, European and UK level.

The European Commission was particularly active, publishing the EU Taxonomy Climate Delegated Act, a transparency tool to determine whether investments and activities are really green. This was followed by the EC’s new sustainable finance strategy to tackle environmental challenges and create sustainable funding opportunities. Green Finance was also prominent in the Chancellor’s Mansion House speech and in the Government’s vision for the future of financial services.

On the prudential front, the PRA is continuing its work on a ‘strong and simple’ approach to reduce the complexity of the UK’s prudential landscape for smaller banks and building societies. The PRA also published an update to its policy on operational continuity in resolution.

On the conduct front, the FCA published its 2021/22 business plan with the aim to be more innovative, assertive and adaptive in view of the disruptive changes it faces. The FCA is also consulting on stronger protection for consumers in financial markets, setting out plans for a new ‘Consumer Duty’, which will set a higher level of consumer protection.

Promoting efficient and competitive markets also remain at the top of the policymaking agenda with the launch of HM Treasury’s wholesale market review.

Please download the report below for more on these topics, alongside other significant developments in the areas of markets, financial security and innovation.