UK Finance has released its submission to government ahead of the Chancellor’s Mansion House speech on 15 July and the government’s new Financial Services Growth and Competitiveness Strategy.
This builds on UK Finance’s previously issued Plan for Growth and sets out ideas to “help the financial services sector to support UK businesses, consumers and the government’s growth mission.”
Key areas highlighted in the submission include:
- Capital markets reform: Fully implement the ambitious reform agenda of the past five years to unlock the full wealth-creating potential of UK markets. This includes delivering in-flight reforms such as those to public offers and admissions to trading.
- FOS reform: Set out how the Ombudsman and the FCA will work together to stop the FOS acting as a quasi-regulator and also put in place a time limit on complaints. Providing this certainty and stability will better allow firms to innovate in the interest of consumers.
- Capital requirements: Reinforce the importance of supporting economic growth through more proportionate capital rules. Safety and soundness remain paramount, but there is a risk that conservative interpretations of global standards are holding back vital growth-driving activities.
- Open banking and digital payments: Provide a clear overall direction for the sector, with stronger industry involvement and a sustainable commercial model to drive investment and deliver real benefits for consumers and businesses. And position the UK as a leader in tokenisation.
David Postings, Chief Executive of UK Finance, said:
“Last year, the chancellor rightly said the UK had become too cautious. This year’s speech and new financial services strategy provide the opportunity to act on that and take a careful but decisive move away from risk aversion, towards a more balanced and internationally competitive approach to regulation. This will enable the financial services sector to better help UK businesses, consumers and the government’s growth mission – something we all strongly support.”
