The future of finance and the UK

This last week has involved a series of significant speeches in the City on the future of finance and the UK after our vote to leave the EU.

Financial regulation should be reaching a more stable period after a decade of far reaching reforms aimed at tackling the causes of the financial crisis.

On Wednesday at the Mansion House Andrew Bailey, the new head of the Financial Conduct Authority, gave a speech where tackling sharp practice in firms and ensuring that more vulnerable customers are protected were at the heart of his speech. Bailey also reflected on the challenges of building up financial resilience in younger generations where home ownership and pensions saving is significantly lower.

Sam Woods, Deputy Governor of the Bank of England head of the Prudential Regulation Authority then went on to call an end to the financial regulatory revolution post crisis. He made clear that there would be no move to undo the current regulatory environment which is largely currently implemented through European regulation. He did however highlight areas where the current regime could be tweaked to improve the competition position of smaller banking institutions.

These comments on not pushing for a massive deregulation during the Brexit process where echoed by the Lord Mayor. He outlined the strengths of the City and how we can help the Brexit process:

‘We can help them by conceiving and communicating our vision for the future of UK financial services. A vision that will provide Government with trusted intelligence, inform their negotiating position, and help set the foundations for a Brexit deal that works well for both the UK and the EU.’

The following evening the Mayor of London Sadiq Khan and the City of London’s Chair of Policy and Resources Mark Boleat addresses the annual dinner of the Corporation’s key decision making Committee.

In front of a wide range of London leaders from politics, culture, education and finance, Mark Boleat made it clear that the success of London could not be replicated in other EU cities and that some jobs in our unique mix of professional and financial services are more likely to relocate to New York than within Europe. Mark declared that the Corporation will continue to make the case for preserving our open and successful capital.

Mark Boleat speaking at a dinner in the Museum of London

Sadiq Khan spoke about the need to listen to the concerns of the City in the Brexit process. He said that ‘for Britain to continue to prosper, we need our financial services industry to continue to prosper too.’ He went on to say that ‘I’m confident there’s a deal to be done – a unique deal that works in the interests of London, Britain and Europe.’
This last week the City of London Corporation has done what it does best – bringing together business, regulatory and political leaders together to discuss our shared future.

I’m determined to use my role as a member of the City of London to support this work. I too believe that we can find a deal with our European partners where our services sector can continue to flourish in Europe and beyond. Working together to make sure the implications of the choices the Government and others will take in the coming years will be the most successful way to drive this negotiation and end up with a successful outcome.

With fellow City of London Common Councilman Tom Sleigh and the Mayor of London.