Chancellor Jeremy Hunt has unveiled a 30-point package of City policy changes that will include rowing back on regulations in order to boost competition and growth. In a speech delivered today at an industry roundtable in Edinburgh today, Hunt outlined a series of new policies explaining how the government intends to “review, repeal and replace” a host of rules that were introduced to protect savers and the taxpayer after the 2008 financial crisis, but which ministers now believe risk hindering the success of London’s banks and insurers compared with their overseas peers.
Hunt vowed to make Britain one of the world’s “most open, dynamic and competitive financial services hubs” setting out sweeping post-Brexit reforms to the City that campaigners have dubbed “Big Bang 2.0”.
“This country’s financial services sector is the powerhouse of the British economy, driving innovation, growth and prosperity across the country,” the chancellor said. “Leaving the EU gives us a golden opportunity to reshape our regulatory regime and unleash the full potential of our formidable financial services sector.”
He continued, “We are delivering an agile, proportionate and homegrown regulatory regime which will unlock investment across our economy to deliver jobs and opportunity for the British people.”
Amongst the key plans in today’s announcement were a commitment to repealing and replacing EU-era Solvency II rules, overhauling the UK prospectus regime, working with regulators to trial a new class of wholesale market venue, and a reform of the ring-fencing regime which is intended to increase the stability of the UK financial system.
Responding to the Chancellor’s statement, Khalid Talukder, co-founder of DKK Partners said: “With Britain facing economic turmoil and huge financial challenges, the time is right for the Chancellor to unleash the country’s potential through sweeping, but sensible regulatory reforms. The financial services industry plays a crucial role in job creation and powering the economy and driving growth. The UK must seize this opportunity and get onto the front foot and make use of first mover advantage.”