As Reuters reported Tuesday (Nov. 29), London city minister Andrew Griffith says financial services legislation for approval in parliament to update financial rule books make regulators nimble and cut insurance capital buffers while still keeping standards high.
The overall thrust of things is to allow more risk and get rewards from taking a risk just need to manage that appropriately, Griffith said during an event hosted by the Financial Times.
We can create the UK as a more suitable place to be a bank to release some trapped capital over time around the ring fence.
The report states that Brexit effectively cut London off from the European Union. The city also faces competition from other financial centers, such as Frankfurt and Paris in Europe, to say nothing of places like Singapore and New York City.
Meanwhile, a new EU law will need European pots to carry some of their clearing business from London to Frankfurt.
As PYMNTS reported earlier this week, major banks in the eurozone had begun calling for euro clearing to be brought in-house even before Brexit. However, those rings have increased in volume in the past few years.
With the support of EU officials, pardon agencies in Europe have raised their share of the market for equities, bonds, and derivatives clearing in euros, something the London Stock Exchange’s (LSE) clearing house still dominates.
However, we reported data from Clarus means that the German clearing house Eurex has expanded its need share in recent years. And with the most delinquent moves by Euronext, LCH will shortly face more competition in this sector.
Meanwhile, the UK stock call has lost its status as the most-valued in Europe, with France claiming the top place in the path of a weak pound and the British economy officially rolling into a slump.
Data means that the integrated value of LSE-listed companies is about $2.821 trillion, while those recorded on Euronext Paris are worth slightly more, around $2.823 trillion. In 2016, London’s store business was worth a full trillion better than its French counterpart.
London wants to regain the mantle of the world’s busiest financial center from New York by overhauling how banks and other financial firms regulate after Brexit.
The UK government said this month its top financial regulators are required to help boost growth and international competitiveness in the financial sector as secondary mandates to existing tasks such as maintaining financial stability and consumer protection.
The changes would affect give regulatory agencies a freer hand to rewrite rules on topics such as initial public offerings, green finance, and cryptocurrencies.
The moves are a response to the UK exit from the European Union, which took full effect earlier this year. In the past, the UK had to follow EU rules, enshrined in UK law. The proposals will facilitate the repealing of the majority of retained EU financial services law, the UK Treasury said this month. The changes would leave it up to the regulators how to act, with a nudge toward rules that.
Requiring regulators to compete internationally will restrict them from introducing rules that are too onerous, according to Nicholas Edge, a policy adviser at the London-based Investment Association, which represents asset managers with more than £9.4 trillion, the equivalent of $12.5 trillion, under management.
Requiring regulators to compete internationally will restrict them from introducing rules that are too onerous, according to Nicholas Edge, a policy adviser at the London-based Investment Association, which represents asset managers with more than £9.4 trillion, the equivalent of $12.5 trillion, under management.
It should mean that the regulators won’t be allowed to hold any of our sectors to an even higher standard than is appropriate compared to global standards, Mr. Edge said.
Changes pushed by the industry include revamping rules inherited from the EU on areas such as banker compensation and bonuses, private-equity firms, hedge funds, and insurance, according to Barnabas Reynolds, a London-based partner at law firm Shearman & Sterling LLP.
So-called light-touch financial regulation that laid the groundwork for the global financial crisis of 2008 prompted a regulatory overhaul in the UK fear those changes, meant to protect investors and markets, could be undone with the greater emphasis on competitiveness.
