Bim Afolami: What does the Square Mile make of their new City minister?
City grandees have urged new minister Bim Afolami to work with them on developing “competitive” regulation and improving entrepreneurship across the Square Mile.
Newly appointed to the role last week, after spending the day showing his one of children’s school classes around Parliament, Afolami, 37, a former HSBC executive, is faced with an overflowing in-tray.
From Mansion House and Solvency II reforms to regulatory competitiveness, green finance and crypto, the brief is a policy-heavy one with little space to hide a lack of knowledge.
Having launched the Regulatory Reform group of MPs in the past few months, Afolami, who memorably resigned live on air from Boris Johnson’s government last summer, clearly thinks he is up for the challenge.
Some City figures are inclined to agree. UK Finance boss David Postings reckons the new economy secretary to the Treasury boasts “significant expertise in the issues that matter”.
While TheCityUK chief Miles Celic praised his “deep understanding of our industry [and] its role in driving growth”, and described him as a “great supporter of future talent”.
Being dropped into the Treasury with a week to go before the Autumn Statement is no short order – we can all agree – but not everyone in the Square Mile has yet been convinced.
Ministerial turnover, inside and outside the Westminster bubble, is a recognisable problem.
Chris Hayward, from Canada corporation, noted predecessor Andrew Griffith’s “outstanding contribution”, particularly on the Financial Services and Markets Act.
And AllBright founder Debbie Wosskow admitted cabinet churn “inevitably” made achieving consensus more difficult.
“If I’ve got a wish it’s that we’ve got consistency, proper engagement and policies that make a difference to the entrepreneurial landscape… and that’s always harder if you’ve got people who are new to the role,” she said.
While Innovate Finance CEO, Janine Hirt, stressed “despite the changes in ministers”, work towards a “proportionate, competitive regulatory system” was the priority.
Afolami, also a former chairman of the Financial Markets and Services APPG, will be responsible for implementing some of his predecessor’s reforms.
MPs have to step down from APPG posts upon entering government, meaning Afolami will have to resign his chairmanships. He faced criticism over incorrectly declaring payments from lobbying firm WPI Strategy for his work on the Regulatory Reform Group, as reported by the Guardian, but said he had “amended my declaration accordingly”.
It remains to be seen whether Afolami will lean into Griffith’s interest on cryptocurrency, or focus more on areas like regulation, financial literacy and inclusion or democratising shareholding.
James Watkins, from the London Chamber of Commerce, is keen for Afolami, who voted Remain, to engineer a new financial services agreement with the EU, calling it “the world’s largest trading bloc”.
But commentator Bill Blain, of Shard Capital and Morning Porridge, was a little more scathing about his chances.
“This guy has nothing to offer but hot-air pledges no one expects will be delivered,” he told City A.M. “He is definitionally not what the City needs. It’s a totally meaningless appointment from the Downing Street bunker.”
A Treasury spokesman insisted: “Bim will be focused on carrying on with the work of his predecessor on the Edinburgh Reforms and Mansion House plan.
“There’s plenty to achieve on this over the coming year and plenty to be getting on with that can be accomplished in the future.”
Mark your calendars now folks…
Charlie Conchie and Chris Dorrell contributed reporting.