(Reuters) – The UK Chancellor of the Exchequer outlined his vision for financial services on Thursday, saying Brexit was a unique opportunity to tailor rules while maintaining high regulatory standards and open markets.
Rishi Sunak, in his first speech at the Mansion House – traditionally an annual address given by the Minister of Finance of the London District of Finance – explained how he wants to "sharpen" the competitive advantage of the sector.
Britain's complete departure from the European Union in December last year largely severed the city's ties with investors on the continent, triggering a transition to over 7,500 financial jobs from London to new hubs in the bloc.
Last year, the Ministry of Finance launched reviews of listing rules, fintech and insurance capital rules, and on Thursday announced that there will be further public consultations on financial reforms.
Rules on prospectuses, which provide investors with information on companies wishing to list, will be reviewed
A review of capital markets will first focus on "immediate changes" to remove the "most inefficient and distorting legal requirements" that the UK inherited from the EU, such as stock trading obligations and double volume.
These refer to rules that require banks to trade on a particular platform and limit how much stock trading can take place on a stock exchange in the "dark."
The Ministry will also explain how it wants to see the insurance capital rules change after the consultation.
There will be a public consultation on the protection of access to cash after the pandemic accelerated a trend towards cashless payments and banks, branch closures.
Mr Sunak said that there are new requirements for publishing sustainability for companies to report on the impact they have on the environment, a step that the EU has already taken.
So far, sustainability information only shows how climate change affects the company's economic performance, and Mr Sunak will publish more information ahead of the UN COP26 climate conference in Glasgow in November.
The financial sector was largely excluded from the UK ha share agreements with the EU, which reduces lucrative ties with investors on the continent and industry. has called for a government strategy for the city.
The EU has not yet decided how much direct access it will provide to the city in the future, but Mr Sunak said on Thursday that Britain would set up a "groundbreaking" system of cross-border access for the sector with Switzerland.
Such an access based on the non ̵
The government on Wednesday presented details of the sale of the UK's debut sovereign green bond or gilded, and a "world first" green savings bond.