Experts warned MPs that asking regulators to promote growth and international competitiveness as well as financial stability opens the door to greater risks in markets.

Having seemingly given up on the idea of regulatory equivalence with the EU, the Treasury outlined bold proposals in its Future Regulatory Framework Review in November that regulators such as the Financial Conduct Authority and Bank of England’s Prudential Regulation Authority should be given an explicit new objective to drive growth and keep the country’s financial services sector competitive in the wake of Brexit.