Britain’s Truss backs powers to override financial watchdogs, says FT.

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Liz Truss, the front-runner to become Britain’s next prime minister, would give ministers powers to override financial regulators if they hold back post-Brexit reforms.

Britain’s departure from the European Union allows it to write its own rules for the City of London; one of the world’s biggest financial centres but now largely locked out of the EU; and facing competition from Paris, Amsterdam and Frankfurt.

The government unveiled a draft law last month to reform financial rules, including easing insurers’ capital rules known as Solvency II, which were inherited from the EU. read more

Finance minister Nadhim Zahawi left out a proposal that would allow the finance ministry to “call in”; or actually override a regulator, saying he wanted more time to consider the arguments.

The FT said Truss would “definitely” press ahead with inserting the call-in power into the bill, which is now making its way through parliament and is due for final approval in 2023. Her team did not respond to a request for comment.

Reuters.

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