Latest posts by Anastasia Moroz (see all)
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The City of London is advocating for a UK regulatory regime that does not damage competitiveness, responding to bankers’ anxiety that not being the EU member will decrease the capital’ stance in global markets.
Jeffrey Mountevans, the City of London’s Lord Mayor, will communicate to regulators that after Britain’s vote in June to exit from the EU, “realistic, collaborative” regulation is a pivotal factor required to keep the sector stable.
“Regulation that will continue to protect our competitiveness and provide liberal market influence across the EU, even after Brexit,” Mountevans stated in remarks disclosed to the media in advance of the annual Mansion House dinner for bankers and regulators.
The City is calling for a subtle forward-thinking Brexit strategy that has a “bold, bright, buccaneering vision of the future”, Mountevans said.
This October the City marked 30 years since the day of the “Big Bang” deregulation of London’s financial markets that greatly assisted in moving London to the top of the league table of global financial hubs.
The financial crisis of 2007-09 then coerced taxpayers into bailing out undercapitalised and poorly supervised lenders ushering in a welter of severer rules.
But since the UK vote, Frankfurt, Luxembourg, Paris and Dublin have been competing for becoming the best venue for the City of London in case banks and other firms shift their businesses to other countries to preserve full access to EU markets.
Backers of Brexit have also announced hopes the EU rules such as caps on banker bonuses will be put an end to.
However, Andrew Bailey, the CEO of the Financial Conduct Authority, who will be also delivering his speech at the Mansion House dinner, has stepped back from the talk of a post-Brexit bonfire of the regulations.
Bailey claimed he would not take part in supporting competitiveness an objective.
He told reporters: “The thing that we can contribute to competitiveness is sound regulation.”
“It’s not appropriate, in my view, to have a competitiveness objective.”