Government looks at widening review into financial markets
The government is planning to widen its review into financial markets as it looks to boost London’s prospects after Brexit.
John Glen, economic secretary to the Treasury, said the government is reviewing financial rules to include regulations on market structure, transparency rules and commodities.
It comes just a week after Lord Hill’s review into stock market listings, which recommended the introduction of dual-class share structures among other proposals to entice startups to list in London.
Speaking to Bloomberg, Glen said the review will be “as broad and as inclusive as possible so that we really look at everything.”
He added that the government was not looking at removing the bankers’ bonus cap introduced by the EU “right now”.
The Chancellor told City A.M. in January that the City could see a post-Brexit Big Bang 2.0 – referring to the period of financial services deregulation in London in the 1980s – after being released from EU laws.
Glen emphasised the changes, which would help to reduce costs and burdens on firms, would be implemented “without undermining the high standards and the integrity of our market and our market reputation.”
“What I’m not detecting is any appetite for revolutionary deregulation, because that does not enhance the integrity of the reputation of the City,” he said.
The government has come under pressure to increase London’s competitiveness after Amsterdam surpassed the capital as Europe’s largest share trading centre just weeks after the Brexit transition period ended.
The UK and EU are still thrashing out details of an equivalence deal for financial services which Glen said he was confident would be concluded by the end of the month.
The Bank of England Governor Andrew Bailey has been scathing in his response to the EU’s demands. In his Mansion House speech last month he said the EU was expecting more of London than its other partners when it comes to a post-Brexit financial services deal.
“It’s a matter for them,” Glen said. “They are a sovereign body who will make those decisions in due course so what I’ve got to focus on is things that I can do that are in my power.”