The Edinburgh Reforms: Big Bang 2.0 or Thoughtful Change?

The Standard Formula

Following the recently introduced Solvency UK for insurers, the British government has announced the Edinburgh Reforms, which propose various amendments to the UK’s financial services sector. These Reforms are the most significant divergences from the EU’s financial services regulations and are intended to secure the UK's status as a leading financial center.

In this episode of “The Standard Formula” podcast, Skadden partners Robert A. Chaplin and Greg Norman discuss the proposed amendments and their implications for regulatory change. Rather than viewing this extensive list of reformations as similar to the “Big Bang” of the 1980s — the last dramatic transformational financial reforms in the UK — both Robert and Greg consider the Edinburgh Reforms to be a thoughtful change.

Many of the proposals found in the Reforms are aimed at domestic regulations, such as consumer credit, the bank ring-fencing regime and the senior managers and certification regime. Additionally, The Reforms are targeted at EU legislation considered to be rigid and burdensome to firms.

Tune in to hear about the implications of the new Edinburgh Reforms and what it means for the state of the UK moving forward.

🗝️ Key Points 🗝️

Top takeaways from this episode

• The Edinburgh Reforms are the largest regulatory reforms since the 1980s. When the UK left the EU, the large body of EU legislation that applied directly in the U.K. was transferred onto the UK statute book.
• The Reforms propose a more flexible system. If implemented, the proposed amendments will allow the UK government to construct a new regulatory regime.
• The Reforms are expected to change domestic legislation. An objective of the Reforms is to facilitate the international competitiveness of the UK economy, which includes promoting inward investment; supporting innovation and new developments such as crypto, AI and machine learning; and ensuring the UK is attractive to internationally active financial services firms and activities.

💡 Meet Your Host 💡

Name: Robert A. Chaplin

Title: Skadden financial institutions partner

Specialty: Robert focuses primarily on transactional and advisory work in the insurance sector. He advises on M&A, disposals, joint ventures and regulatory matters, particularly those involving UK and EU Solvency II.

Connect: LinkedIn

💡 Featured Guest 💡

Name: Greg Norman

What he does: As an investment management partner at Skadden, Greg focuses on advising private capital businesses on their formation and operations, including private fund capitalization and structuring.

Organization: Skadden

Words of wisdom: “Even though the announcement covers a wide spectrum of areas, the proposals are at varying stages of maturity, ranging from the creation of task forces, specific commitments, and announcing certain reviews to cause for evidence and consultations.”

Connect: LinkedIn

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The Standard Formula is a podcast by Skadden, Arps, Slate, Meagher & Flom LLP, and Affiliates. This podcast is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This podcast is considered advertising under applicable state laws.