Big Bang 2.0: Financial institutions welcome Jeremy Hunt’s Edinburgh reforms
Leading financial institutions have welcomed Chancellor Jeremy Hunt’s Edinburgh reforms, which set out to “turbocharge” the UK’s growth.
Announced yesterday, the plans aim to “seize the benefits of Brexit” by delivering the biggest shake-up in the financial sector for 30 years.
According to UK Finance’s chief executive David Postings, the package is “a major step in ensuring the sector remains strong and internationally competitive,” while Pinsent Masons called it “a once in a generation opportunity.”
Building on the government’s Mansion House 2021 package, the reforms include plans to drop Solvency II capital requirements on insurance and ease bank ring-fencing laws.
The so-called Big Bang 2.0 proposals – which also include a review of the MiFID II regime and plans to reshape the banking sector – could unlock up to £100bn of private investment in the UK’s infrastructure, City A.M. reported.
“The sector drives growth, supports investment, and accounts for more than 2.3 million jobs across the country – two thirds of which are outside of London,” said Chris Hayward, policy chairman of the City of London Corporation.
“Good growth and good regulation are two sides of the same coin, fuelling job creation in the UK and beyond.”
Hayward’s words were echoed by Dr Kay Swinbourne, vice chair of KPMG UK financial services.
“The UK’s laws and regulations are, in large part, what makes the UK an attractive place to do business, so the reforms are a step closer to making regulation more efficient rather than a race to the bottom,” Dr Swinbourne said.
“The proposed data-led reviews are a welcome way of ensuring any changes going forward are both necessary and meaningful.”