Chancellor Jeremy Hunt is to introduce plans to “turnocharge” the UK’s financial sector, including changes to a number of old EU regulations.
Mr. Hunt will declare the plans in Edinburgh on Friday, December 9 and said the modifications, to be declared in Edinburgh later, will “turbocharge” growth as the country fights its slow economy and a cost of living crisis.
He said: “This country’s financial services sector is the powerhouse of the British economy, driving innovation, growth and prosperity across the country.
“Leaving the EU gives us a golden opportunity to reshape our regulatory regime and unleash the full potential of our formidable financial services sector.”
The chancellor will summarize more than 30 regulatory reforms, with hundreds of pages of EU rules to be revised, revoked, and replaced, ranging from revelation for financial products to the rules governing banks.
Amid the rules in the spotlight is “ring-fencing” – the regulation that needs major banks to keep investment and retail banking distinct.
This rule was introduced in 2019 and, rendering to the Bank of England, was intended to “increase the stability of the UK financial system and prevent the costs of failing banks falling on taxpayers”.
But the reforms would see banks free from the necessities if they do not have key investment activities.
Banks had earlier pushed for the rule to be axed or for the deposit edge that triggers it to be raised.
London is under a burden after being overtaken by Amsterdam as Europe’s top share-trading centre, and the EU is updating its own financial rules to lessen what remains of its dependence on the city.
Bank of England director Phil Evans said on Wednesday, December 7 that being a global financial center brings a number of benefits to the British economy, but it also brings responsibilities such as resisting pressure to “cut standards in the short term”.
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Source: Sky News