Jeremy Hunt rips up EU banking rules allowing UK to ‘seize on our Brexit freedoms’

Jeremy Hunt has launched a wave of major reforms to the financial sector to replace EU regulation and cut red tape.

The Chancellor said the “Edinburgh Reforms” will seize on “Brexit freedoms” to overhaul banking rules, with changes including a review of accountability rules for bankers and easing capital requirements for smaller lenders.

The package is made up of more than 30 regulatory reforms which Mr Hunt claims will “turbocharge” growth in towns and cities across the UK.

The moves will loosen banking rules introduced after the 2008 financial crisis, which saw some UK banks face potential collapse.

It comes after the City of London has seen trading with the EU impacted upon by Brexit, with Amsterdam overtaking London as Europe’s largest trading hub last year.

On Friday, the Chancellor revealed the shake-up will include a commitment to make “substantial legislative progress” on repealing and replacing the Solvency II directive next year, which is expected to unlock more than £100 billion of private investment, according to the Treasury.

He also promised to reform the UK prospectus regime to support stock market listings and capital raises, reforming rules on real estate investment trusts and reviewing provisions on investment research in the UK.

The Chancellor said: “We are committed to securing the UK’s status as one of the most open, dynamic and competitive financial services hubs in the world.

“The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and homegrown regulatory regime that works in the interest of British people and our businesses.

“And we will go further – delivering reform of burdensome EU laws that choke off growth in other industries such as digital technology and life sciences.”