In a speech during her recent North American tour, UK Chancellor of the Exchequer Rachel Reeves reiterated the Government's commitment to promoting the growth and competitiveness of the financial sector, emphasizing the need for financial regulators to actively support this goal.
Reeves endorsed the prior Government's introduction of a secondary objective for the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). This objective requires these regulators to facilitate the international competitiveness and long-term growth of the UK economy. "The financial services sector is the jewel in the crown of the UK economy, but we must remain competitive in an increasingly tough global landscape," she said.
Reeves, along with Economic Secretary to the Treasury Tulip Siddiq, has expressed concerns about whether the City of London's regulatory bodies are fully committed to these objectives. As such, they have urged the FCA and PRA to clarify what actions they have taken in support of competitiveness and growth.
Reeves plans to outline her fuller strategy to revitalize the UK's financial services sector in her upcoming Mansion House speech. Her agenda includes a comprehensive review of existing financial regulations to eliminate unnecessary rules and enhance global competitiveness. Reeves cited several risks to the UK's position as a global financial center, such as the migration of company listings to New York and the relocation of US banks to other European cities.
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