Following the loss of business after Brexit, Rishi Sunak announced a series of reforms aimed at increasing global traction in trading and the listing of stocks in London.
On Thursday, the Prime Minister released details of proposed changes to the rules governing stock quotes, stocks, bonds, commodity trading and insurance, underlining the UK’s willingness to part ways with EU rules who once helped write.
Snack said the proposal, which also aims to encourage new technologies and promote green finance, is a “new chapter in financial services.”
In a thorough review, the Treasury also announced its intention to force big banks and construction and credit unions to ensure that cash withdrawals and deposit services are available within a “reasonable” distance for most. populations. did.
The UK’s proposal for financial services, one of the UK’s biggest export industries, has become more urgent six months after leaving the EU’s single market.
After the Brexit transition period on January 1, Brussels rules forbade him to stay in London, moving around € 8 billion of European stocks to Amsterdam and Paris per day.
Also in London To lose Hurry to Frankfurt and New York to attract so-called Spack, or blank check companies, for more favorable listing rules. At the same time, one of its strengths, the city’s share of the global derivatives trading market, has declined as traders have been relegated elsewhere.
Snacks acknowledged that Britain’s efforts to restore more efficient access to the EU market through so-called ‘equivalency’ standards have so far failed.
Rob Moulton, Global Co-President of Financial Regulations for Latham & Watkins, said:
Much of the Treasury reforms have focused on Mifid II, a broad rulebook introduced by the EU in 2018 to clean up the market after the financial crisis. Since its introduction, many executives have complained that many regulations are either too prescriptive or create inefficiencies and bring little benefit to the market.
“It’s great to see market feedback incorporated into ratings. As a global financial center, the UK needs to ensure open, deep and efficient capital markets, and many of the proposed changes We support achieving this goal, ”said Kay Swinburne, Vice President of Financial Services at KPMGUK.
In EU regulations, the criteria the UK is considering getting rid of are those that determine where investors can trade stocks and are known as stock trading bonds. Enforcement of this EU standard pulled the company out of London in January, but initially prevented banks from bypassing the exchange and trading clients at their trading desks. It was designed to do.
He also said he would like to abolish EU regulations that limit the volume of transactions investors can make in the private market known as the “dark pool”. [had] The evidence is unfounded. “
The Prime Minister also endorsed some of the proposals presented by Sir Hill. report About the UK list, including reform of prospectus rules.
Other plans included reforms to commodity derivatives rules which the Treasury described as “insufficiently designed and ineffective”. With the implementation of the Mifid rules at the time, the Intercontinental Exchange moved hundreds of energy futures transactions from London to the United States, allowing clients to bypass the new standards.
The Treasury also called the system that regulates the insurance industry “too strict and rules-based”. He said there was a “strong case” for reforming the risk margins used to calculate the insurer’s capital requirements and the so-called corresponding adjustments that determine where to invest.
In February, the UK Insurance Association claimed the change would allow insurers to relocate a total of £ 95bn of capital, giving them more freedom to invest in areas such as infrastructure and green assets.
The Prime Minister also allayed concerns that millions of elderly and vulnerable consumers could lose access to cash as consumers quickly switch to digital payments and banks close branches and ATMs. I promised it.
Sunak confirmed that banks were obligated to fund the services and that the Treasury had the power to set “geographic access requirements” to ensure that liquidity facilities were available. There are no limits yet to the distance of cash services and the percentage of the population that should be in range.
John Howells, CEO of Link, which operates the UK’s ATM network, said the discussions were “very positive” but “ATMs and branches are literally closed every day. Therefore, he must be implemented quickly. “
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