Finance markets

UK Should Focus on Regulation, Fintech and Green Finance

The second reading of the Financial Services and Markets Bill in the House of Commons will take place on September 7, the day after Liz Truss takes over as British Prime Minister.

The bill covers new regulatory framework following the UK’s departure from the European Union and the City of London Corporation said it offered a unique opportunity to ensure the UK remains nimble, cohesive and competitive.

The City of London Corporation said in his blog: “The reforms provide a unique opportunity to ensure the regulatory framework in the UK remains nimble, consistent and competitive. Seizing this opportunity requires expert and professional regulators with adequate resources and effective oversight processes.

Innovate Finance, who represents the UK fintech sector, highlighted six key areas the new Prime Minister and government need to focus on, including regulation.

The Financial Services and Markets Bill could be bolder in supporting international competitiveness and making the UK a financial center for digital assets according to Innovate Finance.

For example, the UK does not yet have “unicorn” companies in terms of crypto-assets, exchanges and related infrastructure, lagging behind the US. Additionally, the US and Singapore are poised to overtake the UK with regulatory frameworks for the new technology.

“Previous government plans to make the UK the best place to start and grow a crypto business need to be expanded to form a more comprehensive and cohesive strategy, with an achievable plan and timeline,” Innovate Finance added. “This requires urgent action on the immediate market litmus test of viable financial promotion rules through to a roadmap for the digitalization of capital markets and payments.”

British FIS, a membership organization for sustainable and responsible finance in the UK, said:

The previous government consulted on the UK Green Finance Strategy.

The Investment Associationthe trade body for UK investment managers, said: