Thank you for contacting me about the Financial Services and Markets Bill. The Bill implements changes to the regulation of financial services arising from the United Kingdom’s departure from the European Union.

I broadly welcome this legislation. I am committed to helping the UK’s financial sector maintain its position as a competitive global financial centre. At the same time, this should not mean any compromise on financial stability or consumer protection post Brexit.

I note your concerns about Schedule 2 of the Bill which will see changes to the Markets in Financial Instruments Directive No. 2 (otherwise known as MiFID 2), a retained piece of EU law. The Government is clear that it will press ahead with these changes and given its large parliamentary majority it is likely to get its way. However, I hope that Ministers will carefully consider the points you raise and be able to provide some reassurance that these reforms will not adversely impact commodity prices, such as energy and food, in the middle of a cost-of-living crisis. I believe the Government needs to make clear what role the regulators will play in monitoring this and also how these bodies will be held to account for the advancement of long-term growth in the real economy.

In my view, Ministers should also explain how they account for – and plan to tackle – the decline in the UK’s financial services exports to the EU since the UK left the EU.

More widely, I am disappointed that the Bill does not do enough on financial exclusion. I believe we need to protect access to face-to-face banking services and address the extra costs that poorer people pay for essential services such as insurance or loans or credit cards.

As the Bill proceeds through Parliament, I assure you I will support efforts to push for bolder, more radical action in a number of areas including green finance, financial inclusion and economic crime. It is important that this legislation delivers not just for our financial services industry but for the wider economy as well.