Friday 24 September 2021 7:25 am

City braces itself for more rules as Rishi Sunak orders financial regulation reviews

Chancellor Rishi Sunak has ordered two immediate reviews of UK financial regulation following a report by the Treasury select committee on the collapse of Greensill Capital.

In a letter published on Friday, Sunak insisted the Treasury acted “entirely appropriately” in its handling of David Cameron’s Greensill lobbying efforts.

Sunak hit back at the report which called for lobbying rules to be tightened and suggested Greensill may have been treated differently as a result of former Prime Minister Cameron’s influence.

In a letter to the committee, Sunak said he had accepted its call for reform of the “appointed representatives regime”.

The Treasury has already been commissioned to review the regime, including legislative reforms to strengthen the oversight of appointed representatives to avoid “opportunities for abuse of the system”.

The Chancellor also said he would take on the committee’s recommendation for reform of the “change in control” process that regulates who can acquire ownership of a bank. 

He added the government had commissioned a report by lawyer Nigel Boardman into lobbying and would respond to the Treasury committee’s recommendations “in due course”.