The UK has long been a pioneer in financial services. Financial innovations that were used to fuel economic activity in new ways were instrumental in Britain becoming a great trading nation from the 17th century onwards. Today, the financial services sector remains central to driving economic activity as the UK seeks to build on its global role outside of the EU, a role that will be built on economic vitality, openness and strong trading relationships. From those early days of innovation, the UK financial sector has never ceased to be a world leader. The sector continues to provide essential support to the wider economy, creating jobs, generating tax revenue and driving regional investment and growth. And the sector can help us address some of our biggest public policy challenges. During the Covid-19 pandemic, the sector has been working in partnership with the government to extend credit on an unprecedented scale to businesses across the country, demonstrating the importance of a strong financial services sector in supporting our economy through good times and bad.

Over time, and with the development of the EU's single market, much of our regulatory approach to financial services has been prescribed by EU legislation. Leaving the EU means the UK has the opportunity to take back control of the decisions governing our financial services sector. We can now be guided by what is right for the UK, regulate differently where we need to, and regulate better.

Making the most of this opportunity will be underpinned by this second phase of the Financial Services Future Regulatory Framework (FRF) Review. A review in which we get the opportunity to determine how our financial services rules are made, who is responsible for making them, how stakeholders can have their say and how those making the rules are scrutinised and held accountable.