(Reuters) – Britain is only at the beginning of post-Brexit efforts to retain London as a global financial center but deregulation will be selective to ensure high standards are maintained, Chancellor of the Exchequer Andrew Griffith said on Thursday.
Finance represents one in 10 pounds of UK economic output, but has been largely cut off from the EU because of Brexit, prompting industry calls to ease red tape to cope with competition from Paris and Frankfurt, as well as New York and Singapore.
Britain has proposed a bill to reform parts of the financial sector to reduce insurance capital requirements, regulate stablecoins and end restrictions on stock trading, but Mr Griffith said there was more to come.
“I am determined to do everything I can to help this industry succeed. … We are only just getting started,”; Mr Griffith told an event held by TheCityUK, which promotes the financial sector overseas.
The financial sector’s access to the EU will be further reduced as the bloc is set to propose a law next week to pressure EU banks to move clearing of their euro derivatives from London to the bloc.
“There is … no reason why Britain cannot or should not continue to provide clearing services for countries in the EU, indeed around the world,” Griffith said, adding that Britain this week took steps to raise already high standards for cleaners.
Facing calls from industry and some lawmakers for Britain to reap “Brexit dividends”, Griffith said there would be another package of reforms to “selectively” lift EU financial rules.
“There will never be deregulation for the sake of deregulation,” Mr. Griffith.