Sweeping reforms to the UK’s financial services sector should mark the first stage in a 20-year plan for Britain to become the next Silicon Valley, Finance Minister Jeremy Hunt said.
Speaking shortly after the regulatory overhaul was announced, Hunt said the plans would improve the country’s global competitiveness, attract investment and further the government’s vision for Britain as an innovation hub. Reinforcing Britain’s financial services industry - as well as strengthening its world-class universities and tech and life sciences sectors - were among three pillars cited by Hunt in furthering that goal. “The guiding purpose of this is to make the UK the most competitive place in Europe as well as the whole world,” he added. The finance minister was speaking from Edinburgh, Scotland, where earlier he unveiled an extensive overhaul of the UK’s financial regulation system.
Dubbed the Edinburgh Reforms, the package of 30 measures includes a relaxation of the rule that requires banks to separate their retail operations from their investment arms. This measure - first introduced in the wake of the 2008 financial crisis - would not apply to retail-focused banks. The government also confirmed it will review rules around the accountability of top finance executives - another post-2008 regulation. The Senior Managers Regime, introduced in 2016, means individuals at regulated firms can face penalties for poor conduct, workplace culture or decision-making.