Connect with us

Hi, what are you looking for?

Top Stories

Economy

Jeremy Hunt to announce major reforms for UK’s financial sector in quest to ‘turbocharge’ growth

Chancellor Jeremy Hunt will launch a major reform of the UK’s financial sector, with plans to rip up red tape and replace a number of EU regulations.

Mr Hunt said the changes, to be announced in Edinburgh later, will “turbocharge” growth as the country struggles with a sluggish economy and a cost of living crisis.

He said: “This country’s financial services sector is the powerhouse of the British economy, driving innovation, growth and prosperity across the country.

“Leaving the EU gives us a golden opportunity to reshape our regulatory regime and unleash the full potential of our formidable financial services sector.”

The chancellor will outline more than 30 regulatory reforms, with hundreds of pages of EU rules to be reviewed, repealed, and replaced, ranging from disclosure for financial products to prudential rules governing banks.

Among the rules in the spotlight is “ring-fencing” – the regulation that requires major banks to keep investment and retail banking separate.

This rule was brought in during 2019 and, according to the Bank of England, was designed to “increase the stability of the UK financial system and prevent the costs of failing banks falling on taxpayers”.

But the reforms would see banks released from the requirements if they do not have major investment activities.

Banks have previously pushed for the rule to be axed or for the deposit threshold that triggers it to be raised.

London is under pressure after being overtaken by Amsterdam as Europe’s top share-trading centre, and the EU is updating its own financial rules to reduce what remains of its reliance on the city.

Bank of England director Phil Evans said on Wednesday that being a global financial centre brings a number of benefits to the British economy, but it also brings responsibilities such as resisting pressure to “cut standards in the short term”.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Editor's Pick

The Board of Investments (BoI) has cleared Sinoma Energy Conservation (Cebu) Waste Heat Recovery Co. Inc. to serve as the operator of a 4.5-megawatt...

Economy

In the wake of Covid-19, people are working harder than ever. While many of us thought productivity may dip when we started working from...

Economy

Few individuals can resist the temptation to try before they buy; therefore, it was only a matter of time until online casinos realized this...

Economy

For more than half a decade, the CBD edibles market has been on the rise. Due to these items’ beneficial formulas, people came to...

Disclaimer: SecretsOfRichDads.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Secrets Of Richdads. All Rights Reserved.