The United Kingdom has an opportunity to further ease financial regulations by moving away from EU rules to boost competitiveness, according to the newly appointed Lord Mayor of the City of London, Alastair King. He also emphasized that the UK could position itself as an alternative to the US under Donald Trump’s leadership.
In an interview with Reuters last week, King, who took office this month as the ceremonial head of the City of London, revealed that he is in discussions with the UK government about how the country could diverge from EU financial regulations. “There are opportunities to be seized,” he said. “We want to have areas where we can have a competitive advantage, but we also want to remain on very good terms with the EU,” he added. While he did not elaborate further, he made it clear that he had expressed to the government his views on regulatory areas ripe for reform.
This comes after UK Finance Minister Rachel Reeves pledged a revamp of the regulations governing financial services, claiming that they have hindered the City’s prospects.
The UK has already made some post-Brexit regulatory adjustments, including easing some of the rules set out by the European Union. Recent changes to Basel regulations on bank capital and proposals to reduce bonus deferrals have also been viewed as signs of a growing divergence from EU standards.
Such regulatory easing would come at a time when leaders are preparing for possible deregulation at Wall Street during Trump’s second term.
Read also: UK to Ease Financial Rules Post-Brexit, Says New Lord Mayor of the City of London
King, an asset manager who will represent the UK’s financial and professional services sector over the next year, sees Trump’s reelection as presenting opportunities for London. “We have this extraordinary international reach, which gives us an exceptional advantage. Remember that old saying: If you want to meet Americans, go to New York. If you want to meet the world, come to London. I think that still holds true,” he said.
However, King noted that the City has lacked confidence following the disruptions caused by Brexit, COVID-19, political instability, and the aftermath of the 2008-09 financial crisis. His predecessor had stated that Brexit had been disastrous, costing London 40,000 finance sector jobs.
King highlighted that bankers had stopped “flying out and knocking on doors” of the most promising international companies, a talent now needed to strengthen ties with fast-growing economies outside the EU.
The Lord Mayor plans to visit the Gulf this month as part of at least four planned delegations to the region during his tenure, with promoting London to rapidly growing Asian economies also high on his agenda.
Domestically, King aims to encourage UK pension funds to invest more in the struggling UK stock market by expanding the “Mansion House Compact.” This voluntary agreement, introduced by the former Conservative government, saw major pension funds commit to increasing investments in unlisted British companies. Additionally, King is keen to encourage individuals’ cash savings to be invested in stocks.
This article is originally published on ch.zonebourse.com
