LMG calls for London market reforms to have ‘teeth’

The LMG is calling for the UK government’s recently announced Financial Services and Markets Bill, which in part aims to boost the London market’s competitiveness, to be given “teeth” to ensure regulators follow through on changes.

The LMG has been campaigning during the last year for concrete regulatory changes that will allow the London market to secure new global market and trade opportunities.

It said the most important area of focus is boosting London’s competitiveness so it can attract further investment and capital.

The Financial Services and Markets Bill includes an objective for UK regulators to focus on the market’s competitiveness.

Caroline Wagstaff, CEO of the LMG, said: “We are delighted that the government is proposing to include a competitiveness objective in the new Financial Services and Markets Bill, but words are not enough. If there is any chance of the reforms succeeding, they must ensure that the regulators can be held accountable for delivering on these new duties. For this bill to change the way the regulators operate, it needs teeth.

“Our concern at the moment is that this might be treated as a tickbox exercise, rather than something which can seriously support UK competitiveness. For us, the success of this development hinges on establishing an approach to regulation that genuinely focuses on risk and sets the right rules for the right firms in the right way,” she added.

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