The UK government has published more details on financial regulation.
Responding to the latest proposals on the development of the UK’s future regulatory regime for financial services, Christopher Croft, CEO of broker body LIIBA, said:
“These proposals provide many of the right ingredients for a vibrant commercial insurance sector to flourish in global markets, but the proof will be in the pudding that government and regulators bake from these.
“As most of our members’ business is international, we particularly welcome the proposal for a specific ‘growth and competitiveness’ mandate for the regulators. And it is especially welcome that this is to be an objective with teeth in that FCA will be asked to report on its adherence to it annually.
“Exports by Lloyd’s brokers in London’s specialty insurance market generate a contribution of around £37 billion to UK GDP, one quarter of the contribution made by the City of London as a whole. We face significant and growing competition from the other centres and from emerging markets. The current regulatory framework has evolved into a disproportionate regime that has added unnecessary burden and cost to the commercial insurance sector, particularly for those serving large, complex and international clients.
“The Treasury’s approach is a step in the right direction. We commend them for seeking to design a regime that will maintain the UK’s global competitiveness and export revenues.”
In response to the consultation published today by HM Treasury on the Future Regulatory Framework Review, the ABI has issued the following comment:
Huw Evans, ABI Director General says,
“The second consultation on the Financial Services Future Regulatory Framework Review has the right intentions towards creating a regime that is fit for purpose but it could have gone further. If the Government wants the UK to compete on the global financial stage then we need a regulatory framework that matches the same vision. It’s disappointing to see the consultation published today recommends a new growth and international competitiveness objective that will only be a secondary objective for the PRA and FCA. This does not go far enough as regulators will always put primary objectives above secondary ones. We have a unique opportunity to boost competitiveness, attract overseas capital and promote the UK as a world leading financial services hub, but unless regulators have economic growth as a primary objective, we are not convinced anything major will change.”