Strategy Launched For Post-Brexit Financial Services
TheCityUK and PwC have launched a bold new strategic vision for UK-based financial and related professional services. The report looks beyond Brexit to 2025 at the role that the industry can play in making possible the country’s long-term success outside the EU.
The UK is the world’s leading international financial centre, but a backdrop of rapid global change brings significant challenges which need to be addressed if it is to retain its competitive advantage and remain a leading part of the economy.
The report, ‘A vision for a transformed, world-leading industry‘ provides an ambitious and practical roadmap to secure the industry’s future. The implementation of the vision will ensure a transformed and renewed industry that continues to be world-class, highly innovative and digitised and better able to meet the changing needs of customers.
While responsibility for the industry’s transformation is its own, it will only be able to reach its full potential with an effective and strategic partnership with government and regulators.
Delivery of this bold vision will see the industry:
– Embrace innovation and new technologies to provide better and more tailored products and services and be a leader in cyber security, using data in a secure and sophisticated way.
– Enhance the prominence of hubs in regional and national centres, developing specialist roles and ensuring a strong supply of local talent with relevant skills.
– Retain its full ecosystem of financial and related professional services and keep the UK at the global forefront of financial innovation by continuing to be a world-leading FinTech centre.
The report includes an economic analysis that measures the likely impact of implementing the recommendations. This would lead to an increase in export competitiveness, innovation and efficiency, leading to an additional £16bn, or 9%, of industry GVA in 2025, compared to the current scenario. Seventy percent (70%) of this additional output will come from cities outside of London. The fastest growing regions for the industry by 2025 would be the North East (30%), Northern Ireland (25%), the West Midlands (23%), Yorkshire and the Humber (23%) and the East Midlands (19%).
Download the report here.
European firms could operate temporarily in the UK after Brexit while seeking full authorisation.
The total value of UK financial services exports remained stable in 2020.
Temporary equivalence was set to expire on June 30, 2022.
The Bank has new powers for reviewing CCPs following Brexit.
Restricting access to London CCPs would result in collateral damage for EU banks and end users.