Jeremy Hunt has announced plans to reform the UK financial sector, in what would be the biggest shake-up of its kind in more than 30 years.
The package of more than 30 regulatory changes - known as the "Edinburgh Reforms" - will replace EU regulation and "cut red tape" following Brexit.
The Chancellor said the new measures will "turbocharge" growth in towns and cities across the UK.
Rules introduced after the 2008 financial crisis, which saw some UK banks face potential collapse, will be reviewed as well.
This includes the “senior managers’ regime”, which holds bosses accountable for financial mistakes, and so-called “ring-fencing” rules, which require banks to separate high street operations from riskier investment operations.
However, critics have cast concern over the potential loosening of these rules.
Labour's shadow City minister Tulip Siddiq said rules governing senior management "were introduced for good reason" after the financial crisis, she told the BBC.
She added: "Introducing more risk and potentially more financial instability because you can't control your backbenchers is this Tory government all over.
"That this comes after the Tories crashed our economy is beyond misguided."
The shake-up will also include a commitment to make "substantial legislative progress" on repealing and replacing the Solvency II directive next year.
Solvency II is an EU directive, retained in UK law, that regulates the insurance industry. The Treasury says replacing this will unlock more than £100billion of private investment.
Mr Hunt also promised to reform the UK prospectus regime to support stock market listings and capital raises, reforming rules on real estate investment trusts and reviewing provisions on investment research in the UK.
The Chancellor said: "We are committed to securing the UK's status as one of the most open, dynamic and competitive financial services hubs in the world.
"The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and homegrown regulatory regime that works in the interest of British people and our businesses.
"And we will go further - delivering reform of burdensome EU laws that choke off growth in other industries such as digital technology and life sciences."
Mr Hunt also said that City regulators, such as the Financial Conduct Authority (FCA), will be given a "secondary objective" to deliver growth and competitiveness.
The policy chairman at the City of London Corporation said major reform of the UK's financial sector is something to be "excited" about.
Chris Hayward denied that the move represents a regulatory "race to the bottom".
"This is not about deregulation, this is about growth," he told BBC Radio 4's Today programme.
"We need the help of good growth and good regulation at the same time, they are two sides of the same coin.
"It's not a race to the bottom, in my view, it's a chance to actually grow our economy and I think we should be very excited about it."
