Skip to main content

City of London supports the new reforms.

 

City of london

City of London heads has backed the government's financial services reforms as necessary to keep London competitive outside the EU, even if the unwinding of safeguards from the last financial crisis increases risk. However, many of the FT's City Network, a group of 50 senior executives, believed that Chancellor Jeremy Hunt's Edinburgh reforms needed to be more significant to yield a second Big Bang for the City. On December 8, Hunt unveiled in the Scottish capital the most extensive set of City reforms for decades, including post-2008 rules on bank ringfencing, where lenders separate retail activities from their riskier investment banking arms. Other areas targeted for reform include the senior managers' regime, which puts personal responsibility for corporate problems on the heads, and aspects of EU regulations such as Mifid II, which governs financial markets, and Solvency II rules for insurers.

The document contained more than 30 proposals focused on repealing retained EU law in financial services and replacing it with a new framework tailored to the UK. He pointed to the balance needed between risk and reward but said that it was time to move on while remembering the lessons of the last financial crisis. "Some of the regulations we put in place were making us less competitive. "Other City leaders said that risk would inevitably increase with changes to rules that tightly bound how the City operated. "

Sir Win Bischoff, chair of JPMorgan Securities, said the first Big Bang in the 1980s, which refers to the deregulation of financial markets under Margaret Thatcher, was of a different order of magnitude. Several in the City Network welcomed the consultation into relaxing the strict rules associated with the senior managers' regime. Ann Cairns, a vice-chair at Mastercard, said the government was keen to show some benefits from Brexit but warned that the impact could be lessened if consultations dragged on and ended up diluting significant changes. While people can disagree about the speed of Britain's likely financial and social decline, the vote in 2016 set Britain off in a direction that will be very difficult to reverse.

"Former BT and KPMG chair Sir Mike Rake agreed with Hands and pointed out that many of the reforms were portrayed as "Brexit freedoms" that could have been done within the EU.".

www.sba.tax

Labels:

Comments

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

India- UK trade deal.

  According to India's top trade official, talks with the UK regarding a trade agreement are progressing well, despite obstacles related to temporary work visas and the opening up industries like automotive and spirits. The Commerce and Industry Minister, Piyush Goyal, explained that India is seeking transition periods or greater market access in specific sectors due to its economy, which is slightly larger than the UK's and expected to outgrow it in the coming decades. If a trade deal is reached, it would be one of the most significant agreements for Britain since leaving the EU, and it would also be necessary for India, which surpassed the UK as the fifth-largest economy last year. Goyal stated that India aims to increase its economy from $3.5tn to $35tn by 2047, the country's centenary of independence. According to officials and diplomats in India, talks about a proposed trade deal may be finished by early September, just in time for the G20 summit in New Delhi. Nigel Hu...
Post a Comment
Read more