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The United Kingdom's financial services industry recently submitted a report on the next move to help Britain retain its position as a globally competitive financial hub post-Brexit. The report plans to span cultural, market practice, and law & regulation change. In any case, the country seeks to reform its financial regulations after the Brexit deal cut them off from the EU. Recent companies’ decisions to list stocks in New York have raised concerns.
Financial experts are wary about whether London will maintain its position in the global competition. The CMIT (Capital Markets Industry Taskforce) sector body that commissioned the report aims to enable Britain to maintain its position as a top global financial center. CMIT seeks to support the development of international companies and facilitate high growth in the UK. The sector body announced that the report was an easily understandable, concise, and comprehensive report that defines the new UK market model.
In general, the report would help deliver growth across the entire UK economy. But critics believe a mindset change is necessary to lure pension funds to invest in Britain’s firms. The change would also enable shareholders to facilitate higher CEOs’ pay to access top talent across the UK. A core group comprising advisory firm Teneo senior managing director Mr. Alex Hickman, Penny James (the former Direct Line Group CEO), Nigel Wilson (Legal & General Group CEO), and Mark Austin (a lawyer) will file the report.
Meanwhile, Mark Austin recently wrote a report on increasing secondary fundraisings. The Capital Markets Industry Force will publish the report in the autumn and host a conference on 7th July to inform stakeholders. The officials have undertaken over 30 public consultations and are on the final steps to approve the Edinburgh Reforms draft. Overall, the financial sector officials define the report as a post-Brexit global roadmap for the future.
Jeremy Hunt believes that changes in the UK financial model will enable the country to become a competitive, dynamic, and open worldwide financial services hub by 2030. The report presents about 30 changes, such as easing capital for small-scale lenders and lifting a cap on bankers. On the other hand, the report also proposes to relax ring-fencing regulations that separate retail operations from risky investment banking. It will also review rules that hold bankers liable for their decisions.
Above all, Hunt believes it is time for the government to leverage ‘Brexit freedoms” that could make the UK economy more competitive. Other economists explain that the UK exit from the European Union has resulted in trade barriers that have led to the migration of businesses to other EU cities. London lost to Amsterdam in 2021 as the largest share-trading center, but it remains the most significant financial services hub. The Conservative government believes the reforms will allow a more innovative regulatory plan.