UK Treasury Minister Rishi Sunak has ordered two immediate reviews of national financial regulations related to the collapse of supply chain finance firm Greensill Capital.
In a letter to the Parliamentary Commission, which issued a report on the collapse of Greensill in July, the same committee announced on Friday that the snack was by Greensill, known as the “appointed representative government.” He said he accepted the call to reform the mechanism used. “
Mr Snack said in a letter first reported by the Financial Times that the Treasury has already begun a review of the administration, including legislative changes to strengthen surveillance of appointed representatives to prevent opportunities for system abuse. Said.
Regarding regulatory reforms surrounding bank control changes, Sunak is working with the Treasury to work with the Prudential Regulation Authority and the Financial Conduct Authority to consider how changes in control applications are handled and what changes are being considered. He said he was considering what he needed to do.
Earlier this month, financial regulators said trading finance companies had to do more to identify potentially suspicious activities to perform additional risk assessments.
The collapse of Greensill Capital earlier this year highlighted risks in the $ 1.3 trillion supply chain finance business.
Parliamentary Commission in July lacked judgment about former British Prime Minister David Cameron’s use of personal contacts and informal channels for lobbying Greensill Capital, which is currently collapsing. He said he showed that he was.
The Commission did not require supply chain financing to be a generally regulated activity, but said the appointed representative system should be strengthened to reduce “opportunities for abuse.” rice field.
In May, the Financial Conduct Authority (FCA) of the United Kingdom stated that it was officially investigating Greensil’s operations in the United Kingdom as part of a global investigation.
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