From reforming capital markets and seeking closer links with advanced
and emerging financial centres, through to boosting opportunities for
green investment, and protecting access to cash, Rishi Sunak outlined
how the UK’s financial services industry can help the country to lead on
the global stage while also acting in the interests of people at home.
In his first address at Mansion House to an audience of young and
aspiring leaders in financial services, the Chancellor outlined the wide
set of reforms already underway in the UK.
He also published a new ‘roadmap’, detailing both the progress being
made, and how the government is going further to ensure the sector
remains competitive now it has left the EU.
In his speech, the Chancellor said:
Financial services don’t just generate
prosperity at home. They give us the economic power to project our
values on the global stage.
He added:
More open, more competitive, more
technologically advanced, and more sustainable – that is our vision for
financial services. The Roadmap we are publishing today sets out a
detailed plan for the next few years – and I look forward to delivering
it, together.
A world leader in Green Finance.
In his speech, the Chancellor announced plans to require companies,
pension schemes, financial services firms and their investment products
to report on the impact they are having on the climate and environment -
as well as the risks and opportunities facing their business.
These new integrated Sustainability Disclosure Requirements will
bring together and streamline existing climate reporting requirements
and go further to ensure consumers and investors have the information
they need to make informed investment decisions and drive positive
environmental impact. The Government intends to legislate to deliver
this and will set out its approach to green finance regulation ahead of
COP26.
And with over 70% of people saying they want their investments to
avoid harm and achieve good for people and the planet, the Government
will also work with the Financial Conduct Authority (FCA) to create a
new sustainable investment label - a quality stamp - so that consumers
can clearly compare the impacts and sustainability of their investments
for the first time.
Details have also been announced on the types of green projects that
will be eligible for funding when the UK issues its first ever sovereign
green bond, known as a green gilt, later this year, and a world-first
green savings bond offered by NS&I, with yesterday’s publication of
the UK Government Green Financing Framework.
Green projects like zero-emissions buses, offshore wind and schemes
to decarbonise homes and buildings will be eligible for funding, with at
least £15 billion of green gilts issued this financial year alone.
These two products will give both investors and savers across the UK
the opportunity to join the collective fight against climate change and
other environmental challenges, reinforce the UK’s position as a
world-leader in green finance, and create new jobs in green technologies
across the country.
A sector at the forefront of technology and Innovation
The Chancellor outlined how the UK is supporting innovation and the
adoption of cutting-edge technologies - but stressed the importance of
having the right protections in place, with plans for legislation to
protect access to cash.
A consultation, published today, outlines the government’s plans for
new laws to make sure people only need to travel a reasonable distance
to pay in or take out cash, and that the FCA has the powers that it
needs to hold firms to account to meet these requirements.
Alongside the legislation that has already been passed to enable
cashback without a purchase, these proposals will support the continued
use of cash in people’s daily lives and help enable local businesses to
continue accepting cash by protecting deposit facilities.
A competitive marketplace
In his speech the Chancellor announced consultations on reforms to
the regulation of wholesale capital markets and a fundamental review of
the prospectus regime following recommendations in Lord Hill’s listings
review.
The prospectus review will cover the rules governing the information
companies must publish when raising finance to make it simpler, more
agile and more effective. New proposals to reform the UK’s wholesale
markets regime aim to deliver a rulebook which is fair, outcomes-based
and supports competitiveness, whilst ensuring the UK maintains the
highest regulatory standards.
An open and global financial hub
The Chancellor also outlined how the UK will use its strengths as a
global financial hub to establish and enhance strong relationships with
jurisdictions all around the world, seeking closer links with advanced
and emerging financial centres.
He highlighted how a new financial services partnership with
Singapore was agreed yesterday, and that the UK is negotiating a
ground-breaking deal with Switzerland, the most ambitious financial
services agreement ever attempted.
He also noted the importance of confidently pursuing an economic
relationship with China in a safe, mutually beneficial way without
compromising the UK’s values or security.
The below consultations will be published at midday: