Regulators could help London stay competitive
UK lawmakers have urged financial regulators to help keep London a major global financial centre after Brexit.
A report from a House of Lords committee has suggested the UK government could require regulators to boost competitiveness in the industry and help to ensure the capital remains a global base for financial dealing.
Their recommendations come at a time when the US government has slashed corporate tax and relaxed banking regulations.
According to the report, financial regulators could be required to take steps to promote competitiveness in the UK financial sector. The financial services industry is one of the main wealth generators in the UK, raising more than £70 billion in tax revenue every year. Leaving the EU could enable the UK government and overseeing bodies to redraw regulations relating to the financial sector.
Law makers have also called for the government to move ahead with announcing the next Governor of the Bank of England. The current Governor, Mark Carney, is due to leave the post in 2019, and lawmakers have suggested that naming a replacement early would help to maintain the UK’s influence in the global financial industry.
As well as looking ahead to a post-Brexit economy, the report suggested it was important for the UK to retain a high degree of regulatory alignment with Europe in order to safeguard market access and benefit the national revenue.