UK post-Brexit finance ‘transition’ start

UK Finance Minister Nadhim Zahawi said on Tuesday that regulators should work to increase the competitiveness of the financial sector globally.

According to UK Finance Minister Nadhim Zahawi, proposals to increase government control over the activities of financial regulators have been put on hold for the time being, but UK financial regulators will still have to support the financial sector’s ability to compete globally. said.

“The long-awaited financial services and markets bill will be presented to Parliament on Wednesday to take advantage of Brexit and reshape the UK financial services industry,” Zahawi said.

After the UK left the European Union, bankers have been calling for rapid change to strengthen London’s attractiveness as a major global financial hub.

As Amsterdam has already overtaken London to become Europe’s largest stock trading hub, the UK relaxed its listing rules to allow chipmaker Arm to list on the London Stock Exchange.

Zahawi is fighting a more cautious Bank of England, saying the bill would release “hundreds of billions of pounds“. The measure requires insurers to reduce their “excessive” capital buffer to invest in infrastructure.

The bill also sets the standard for leveraging stablecoins, a type of cryptocurrency, for payments, strengthening financial fraud while ensuring poor individuals and rural areas have access to cash.

Zahawi told attendees at the City of London’s annual Mansion House Dinner in the historic financial district: “Consumers will continue to be protected, and we will act to protect the cash access of millions of people who depend on it and legislation that will ensure victims of fraud are compensated,” Zahawi said.

When scammers trick consumers into paying them online in the form of “approved push payment scams,” the UK’s payment system regulator has the power to compensate the victims.

Increasing international competitiveness in the financial sector, a demand currently facing many regulators around the world, will be allocated for secondary purposes to regulators such as the Bank of England and the Financial Supervisory Service.

But other lawmakers worry that this could signal a return to the loose regulation that led to bank bailouts during the financial crisis. According to Zahawi, the new goals will be “obviously” subordinated to maintaining economic stability and protecting consumers.

Part of the bill would move the EU inheritance bill to the UK regulator’s set of rules, making future amendments simpler, but giving much more power to oversight bodies at the expense of Parliament.

To balance this, the Treasury has signaled that it could give itself the power to “convene” regulators and ask them to reconsider regulations if they think it’s in the public interest.

Legislators have advised against doing this, and Bank of England Governor Andrew Bailey last week said that the independence of regulators is critical to maintaining London’s reputation as a major financial hub.

According to Zahawi, calling rights are not included in the bill, suggesting a more cautious approach. “It takes time to carefully consider all issues before making such a critical choice,” the speaker said.

According to Caroline Wagstaff, CEO of London Market Group, which represents the insurance market, the new financial services law will only strengthen the industry if the regulator’s competitive goals are real.

In Wagstaff’s words, legislation must “contain enough information about how regulators should be held accountable on the subject of competitiveness” to make the necessary changes to regulatory culture, not just words on paper.

London Mayor Vincent Keaveny said a “regulatory bonfire” could damage the industry’s image abroad, but a clear commitment from regulators is needed on how to focus more on competitiveness.

All proposals presented in a government-sponsored assessment released on Tuesday to accelerate the process by which publicly traded companies can access the market for additional capital, according to UK Finance Minister Nadhim Zahawi.

Eliminating paper certificates, a new digitization team led by former HSBC head Douglas Flint will modernize stock ownership.

According to Zahawi, the government will amend the Companies Act to speed up processes related to rights issues and raising capital.

To reaffirm the government’s “vision for the sector“, the first annual “status of the sector” is released on Wednesday.