Prime Minister Liz Truss has said she plans to help the City of London maintain its competitive edge and ‘supercharge growth and investment’.
In an interview with City AM, Truss said the City was the ‘jewel in the crown of the UK economy’ but had for too long seen its potential held back by ‘onerous EU regulation’.
Truss has called for reforms of Solvency II and MiFID II regulation, which some insurance firms have said are needed to free up cash to invest in UK projects.
According to Institute of Export, Solvency II contains rules for insurance firms, whilst MiFID regulates financial markets and protects investors. Both were retained by the UK post-Brexit.
Truss remarked, “By unleashing investment and revitalising the City’s research expertise, we will be able to offer the tools businesses need to invest in the dynamic companies that will get our economy moving.”
The Telegraph recently reported that the chairman of the London Stock Exchange warned London will lose its current status as a global financial hub without a ‘once-in-a-generation’ overhaul of City rules.
The City of London Corporation recently said post-Brexit trade deals have left “significant barriers” in place that are hampering digital trade.
Truss recently called for the merger of three major watchdogs in what would be a massive regulatory shakeup.
She said she was planning to merge the Financial Conduct Authority, the Prudential Regulation Authority and the Payments System Regulator into a single new body.
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