UK knows EU will not grant the City access to financial services: Lord Hill
There is a growing realisation that the UK should not wait for the EU to give the UK access for financial services but get on with building a more competitive, outward-looking Canada, according to Jonathan Hill.
Lord Hill, a former EU Commissioner for financial services who recently authored a report on easing the City’s listing rules, does not expect Brussels to grant the UK any significant access to its financial services space.
The UK left the bloc’s orbit in December following the end of the transition period, and its post-Brexit trade agreement with the EU does not include financial services.
“A broader realisation that that isn’t going to happen is spreading through the market,” Hill said at an event organised by the Centre for Policy Studies.
The member of the House of Lords added that the shift in euros share trading from London to Amsterdam in January “crystallised” minds.
“The worst possible thing you can do is just sit there and hope the Europeans will come to our rescue.”
“The politicians, the regulators and the market are now broadly aligned about the need to get on with constructing a more, nimble, competitive, dynamic regulatory future for the City.”
City minister John Glen has indicated he will publish proposals later this year on making Britain’s capital market more attractive and competitive.
Moreover, the Financial Conduct Authority’s director of market oversight, Clare Cole, argued recently that Brexit has created an opportunity for a bottom up review of primary market rules.
“We are not looking for change for the sake of change, we are not looking for quick fixes or seeking low standards,” Cole reportedly said.
FCA recommendations on changing listing rules will be put out to public consultation later this year.
“It’s mad that retail investors are not able to participate in really good quality bond offerings,” Cole noted.