One Canada Square, at the heart of Canary Wharf financial district seen standing between the Citibank building and HSBC building on 14th October 2022 in London, United Kingdom.
Mike Kemp | In Pictures | Getty Images
The U.K. government on Friday announced extensive reforms to financial regulation that it says will overhaul EU laws that “choke off growth.”
The package of 30 measures includes a relaxation of the rule that requires banks to separate their retail operations from their investment arms. This measure — first introduced in the wake of the 2008 Financial Crisis — would not apply to retail-focused banks.
The government is also expected to reform rules around the accountability of top finance executives — another post-2008 regulation.
Changes announced in the package, dubbed the Edinburgh Reforms, also include a review of rules on short-selling, how companies list on the stock exchange, insurers’ balance sheets and Real Estate Investment Trusts.
Finance Minister Jeremy Hunt said he wanted to ensure the U.K.’s status as “one of the most open, dynamic and competitive financial services hubs in the world.”
“The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses,” he said in a statement.
“And we will go further – delivering reform of burdensome EU laws that choke off growth in other industries such as digital technology and life sciences.”
The government is billing the reforms as a way to capitalize on freedoms offered by Brexit, stating that hundreds of pages of EU laws governing financial services will be replaced or scrapped.
Many argue that Britain leaving the EU has damaged the country’s financial competitiveness, with Reuters reporting that London lost billions of euros in daily stock and derivatives trading to EU exchanges following its departure from the bloc. Researchers at the London School of Economics said earlier this year that financial services will be among the sectors worst hit by Brexit.
Seeking to boost the U.K.’s sluggish economic growth has also become a priority for the government, with the country forecast to be on the brink of a long recession.
The previously-announced removal of the U.K.’s cap on bankers’ bonuses was one of the few policies announced by Hunt’s predecessor, Kwasi Kwarteng, that remained after his chaotic “mini budget.”
Kwarteng had promised a “Big Bang 2,” referring to the deregulation of the London Stock Exchange in the 1980s, which attracted a host of global banks and investment firms to the U.K. and rapidly increased the size of the City of London’s financial sector.
Another proposed reform would see regulators’ remit increased to include facilitating the competitiveness of the U.K. economy, particularly the financial services sector.
However, John Vickers, former chair of the Independent Commission on Banking, warned in a letter to the Financial Times this week that the “special favouring of the financial services sector … could be detrimental to it, as we all saw 15 years ago.”
What Is It About Pamela Anderson?
Ratingen: Gafferin films accident victims – police crack down
Crossbow-Wielding Windsor Castle Raider Who Wanted to Kill the Queen Convicted of Treason
House GOP struggles to unify over budget ideas
Dwayne Johnson Shares Moving Message After His Mom’s Car Crash
Sesame Vegetable Fried Rice With Baked Tofu Recipe
Spaghetti With Bacon and Broccoli-Parmesan Cream Sauce Recipe
Whole Wheat Dumpling-Topped Chicken Pot Pie Recipe
Butternut Squash and Pea Mac and Cheese Recipe
Google Pixel Watch Review: A Fun Smartwatch to Help Build Your Fitness Game
Congress Has a Lo-Fi Plan to Fix the Classified Documents Mess
‘1000-lb Best Friends’: Tina Defends Meghan Against Viewers Calling Her ‘Lazy’ and a ‘Mooch’
Quoting Taylor Swift Lyrics Is an Actual Linguistic Thing
Julia Fox’s NYC Home Is Surprisingly Underwhelming as She Admits She’ll ‘Get Roasted’ for Her Apartment Tour
Gautam Adani Briefly Falls Out Of Top 20 Richest As His Net Worth Spirals After ‘Corporate Con’ Allegations
Finance23 hours ago
Capital One Stock Gained 12% In One Week
Tech23 hours ago
AI Says Earth Will Hit Critical Global Warming Thresholds Faster Than We Thought
Travel23 hours ago
Quick N’ Easy: Experience fully automated shopping at Brussels Airport’s Pier A
Lifestyle24 hours ago
Rita Ora Reveals Massive Wedding Ring After Marrying Taika Waititi
Travel22 hours ago
Ellaidhoo Maldives by Cinnamon leads the way in sustainable hospitality
Travel24 hours ago
Emirates Takes Flight with 100% Sustainable Aviation Fuel in Milestone Demonstration
Finance24 hours ago
Is it Too Late to Buy Fantom? Crypto Traders Give their FTM Price Predictions
Finance23 hours ago
Council Post: The Inflation Reduction Act Shows The Way Forward On Climate