The Committee said it found the Edinburgh Reforms had so far had “limited impact of the Government’s flagship financial services reform programme”.
On Friday (8 November), the TSC published a report on the progress made on Chancellor Jeremy Hunt's Edinburgh Reforms in the last year, examining the 31 «strands» of work which the chancellor outlined as the main focus of the reforms.
While the Treasury said the chancellor had completed 21 of the 31 reforms in the first year, analysis by the TSC found six of the actions marked as ‘delivered' by the government had not yet been completed.
According to the committee, a further six measures should not be considered as reforms as they relate to actions such as publishing a document or welcoming a consultation.Moreover, it found that the reforms had «limited impact of the government's flagship financial services reform programme».
Deep Dive: Investors recognise LTAF potential but structure has yet to build market credibility
As well as finding the progress «disappointing», the committee considered the government's intention to repeal EU legislation on the European Long-Term Investment Fund (ELTIF), reflecting that the new UK LTAF «provides a better fund structure for the UK market».
MPs agreed with the Treasury that it was a «genuine reform» and it was one of the commitments that «had been delivered», as the commencement regulations to repeal EU legislation on ELTIF were made on 10 July, as part of the Mansion House reforms.
However, they voiced concerns over the LTAF structure following the failure of London Capital & Finance (LCF), which collapsed in 2019 after more than 11,000 retail customers faced losing their savings in a series of events driven by its mini-bonds promotion,
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