Mini Budget 22: Government to 'scrap' Solvency II to boost investment

Chancellor says replacing EU law with rules ‘tailor made for the UK’ will free up billions

Jonathan Stapleton
clock • 1 min read
Kwasi Kwarteng. Image: Andrew Parsons/Number 10
Image:

Kwasi Kwarteng. Image: Andrew Parsons/Number 10

The government will replace Solvency II regulations with “rules tailor made for the UK” in a bid to free up billions of pounds of investment, Kwasi Kwarteng has announced.

In the HM Treasury Growth Plan 2022 - released as part of the Mini Budget today - the chancellor said the financial services sector would be at the heart of the government's programme for driving growth across the whole economy.

The plan said that, later this autumn, the government would "bring forward an ambitious deregulatory package to unleash the potential of the UK financial services sector".

It said this would include the government plan for repealing EU law for financial services and replacing it with rules tailor made for the UK, and "scrapping EU rules from Solvency II" to free up billions of pounds for investment.

Solvency II is the EU directive that sets out regulatory requirements for insurance firms, including pension buy-in and buyout providers. It covers areas such as financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure. It came into force at the beginning of 2016.

More on Regulation

FCA receives 210 whistleblower complaints over Consumer Duty in Q1

FCA receives 210 whistleblower complaints over Consumer Duty in Q1

Closed 265 whistleblowing cases between January and March

Michael Nelson
clock 11 May 2026 • 2 min read
Ex-investment adviser sentenced to additional prison time

Ex-investment adviser sentenced to additional prison time

Richard Faithfull failed to pay back £529,961

Sophia Panayi
clock 11 May 2026 • 2 min read
FCA to launch multi-firm review looking at bereavement processes

FCA to launch multi-firm review looking at bereavement processes

Follows customer vulnerability work

Sophia Panayi
clock 07 May 2026 • 2 min read

In-depth

Standard Life/Aegon UK deal signals provider 'shrinkflation' as advisers await impact

Standard Life/Aegon UK deal signals provider 'shrinkflation' as advisers await impact

'Strategically smart, operationally delicate'

Isabel Baxter
clock 15 April 2026 • 7 min read
Are AI tools the new robo advisers?

Are AI tools the new robo advisers?

Reform not replacement

Laura Miller
clock 07 April 2026 • 8 min read
Advisers warned against 'cost-saving' exercises as FCA proposes ditching annual suitability requirement

Advisers warned against 'cost-saving' exercises as FCA proposes ditching annual suitability requirement

Changes offer an opportunity for more ‘meaningful’ advice

Sophia Panayi
clock 26 March 2026 • 4 min read