UK government races to publish overhaul of new financial rules
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THE UK government is rushing to show its plans to boost the City of London by publishing new financial services draft legislation next week despite turmoil at the top of the Conservative party.
Nadhim Zahawi, who was appointed chancellor last week when Rishi Sunak quit, wants to press ahead with the publication of the Financial Services and Markets Bill before Parliament's summer recess that starts on Jul 22, according to people briefed on the matter. The move is an attempt to show the government is translating the 2016 Brexit vote into benefits for British businesses.
The Treasury didn't respond to a request for comment.
The finance bill is set to be the most significant overhaul of City of London rules for decades, aimed at slashing unnecessary rules and boosting the UK's competitiveness after leaving the European Union. After the bill was announced in the Queen's Speech in May, HM Treasury officials have been working intensively on the new framework for banks, insurers and asset managers.
There has been speculation in recent days that the bill would be delayed until after Parliament returns in September by the departure of Sunak and City Minister John Glen, who played a key role in shepherding the rules through. With some key issues still not settled, it is still possible the publication of the bill will be postponed for 2 months.
But Zahawi and Richard Fuller, the new city minister, are keen to push ahead before the cut off of Thursday (Jul 21) next week before Parliament's summer break, according to people familiar with the plans, who asked not to be identified. The bill has been pencilled in for Tuesday or Wednesday and some areas that are not agreed may be left out in order to get the bill out, they said.
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Zahawi is set to give a speech on Tuesday night at the Mansion House in the City of London in front of an audience of senior finance industry figures, emphasizing the need to make the UK more internationally competitive to boost post-Brexit opportunities.
He is expected to highlight potential changes to London's listing rules to attract more fast-growing companies and international investors. Those efforts will also aim to put retail investors on a more equal footing with big fund houses in capital markets.
The proposals, seen by Bloomberg News, have been drawn up by Mark Austin, a partner at law firm Freshfields Bruckhaus Deringer. They build on a 2020 review into the industry by Jonathan Hill, a former financial services commissioner for the European Union, which was asked to look at the listing rules by the government as part of its push to advance Britain following Brexit.
Once the bill is published, members of Parliament will have a chance to debate its details before its passes into law through Royal Assent. BLOOMBERG
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