Chancellor Rachel Reeves used her first Mansion House speech, on 14 November 2024, to set out a package of reforms intended to drive growth and competitiveness in UK financial services. The Treasury announcement said the package would rebalance a regulatory system that, in the government's view, had sought to eliminate risk taking after the financial crisis.
Corporate INTL Newsroom · Banking & Finance
Mansion House 2024: Chancellor Sets Out Pension Megafunds and Regulatory Reform
By The Corporate INTL Newsroom · 18 November 2024
Pension megafunds
The government published the interim report of its Pensions Investment Review, setting out plans to consolidate defined contribution schemes and the Local Government Pension Scheme in England and Wales into larger "megafunds", modelled on Australia and Canada. In the speech, the Chancellor said the 86 Local Government Pension Scheme administering authorities would be required to consolidate their assets into 8 pools. Two consultations are to precede a Pension Schemes Bill next year, and the government estimates the reforms could unlock around £80 billion of investment in businesses and infrastructure.
Regulation and redress
The Chancellor wrote to the Financial Conduct Authority, the Prudential Regulation Committee, the Financial Policy Committee and the Payment Systems Regulator to set a greater focus on supporting economic growth. The Financial Ombudsman Service framework is to be modernised, and the government will consult on replacing the Certification Regime for staff below senior management with a more proportionate approach.
Capital markets and other measures
- A commitment to legislate to establish PISCES, a regulated market for trading private company shares, by May 2025, with transfers exempt from stamp taxes on shares.
- A pilot of a Digital Gilt Instrument using distributed ledger technology.
- A consultation on a new framework for UK-based captive insurance companies.
- A National Payments Vision and steps towards a sustainable finance framework, including regulation of ESG ratings providers.
A first Financial Services Growth and Competitiveness Strategy will be published next year, focusing on FinTech, sustainable finance, asset management and wholesale services, insurance and reinsurance, and capital markets, with a call for evidence alongside.
What it means
Pension trustees, asset managers and regulated firms face a period of consultation and legislative change. The detail of the pensions consolidation proposals and the regulators' responses to their new remits will shape how far the reforms change investment and compliance practice.
Sources
Looking for legal or business advice?
Tell us what you need and the Corporate INTL team will help you find the right lawyer or adviser from our members in 150+ jurisdictions.
1What you need2Your details
More from the newsroom
All latest news → Related stories
Banking & Finance
Will UniCredit Buy Commerzbank? Why Control Is Expected This Month and What Changes
Banking & Finance
Binance Hack: Inside the $6.3bn Crypto Theft and What It Means for Customers
Banking & Finance