MPs launch inquiry into financial services

UK regulators and leading bankers are set to be called for evidence by MPs after the Treasury committee launched an inquiry into the future of financial services.

The influential committee will examine how financial regulation should be set and scrutinised by parliament after.EU directives cease to govern new rules.

MPs from across the party spectrum will also examine how regulators are funded.and the extent to which rules should seek to promote the interests of consumers. Past inquiries into financial services have included evidence sessions with the governor of the Bank of England, the head of the Financial Conduct Authority and bosses of big banks.

Financial services makes up an unusually large share of the UK economy because of the City's status as a global financial centre employing many thousands of bankers, lawyers, consultants and others. The City built its position by being a financial gateway into Europe but on 31 December the UK's Brexit transition period ends, threatening a dislocation between the UK and the EU.

Mel Stride, the committee's chairman, said: "The financial services sector is a crucial component of the UK economy. There are choices to be made by the UK government that will have long-lasting impacts on the future of the sector.

“As part of our new inquiry, we’ll examine how the sector can best take advantage of the new trading environment, what regulatory changes should be made, and what role Parliament should play in influencing and scrutinising such changes."

Stride, a Conservative MP, said the committee would make recommendations for the government, public bodies and the industry to keep the UK as a leading financial centre.