Financial Services policy briefing: February

As the CBI embarks on a project to create an ambitious and detailed vision for a modern, dynamic and competitive UK economy in 2030, the Financial Services team will focus on a number of critical consultations and will engage with members on the role of financial services in recovery and in the longer term.

Why the UK needs its first ever economic strategy

Last week CBI Director-General, Tony Danker, gave an inaugural speech on the future of the UK economy, urging businesses to drive change from within their organisations and devising a strategy on the future of the UK economy.

Consultations

The CBI will respond to the following consultations. Please contact Ana or Chris if you have any final comments.

• Financial Services Future Regulatory Framework Review. This consultation explores how the UK regulatory framework for financial services will adapt outside the EU. The link to the consultation can be accessed here.
  
  
• Solvency II consultation. This call for evidence to seek views on reforming the prudential regulation of the UK insurance sector.
  
  
• Treasury Select Committee inquiry on the future of financial services. The inquiry looks at how the sector can take advantage of the UK’s new trading environment, the FS regulatory framework outside of the EU, how to develop new areas of growth for the sector, and the role of Parliament in influencing new FS regulations.

Sustainable Finance paper

The CBI Financial Services team has now published their published their discussion paper on Sustainable Finance, focusing on three areas:

1. Positive engagement between businesses and people, including employees, customers, supply chains, local communities, and wider society. 
   
   
2. Operationalising sustainable finance principles within organisations through a usable taxonomy, definitions, incentives, and regulation.  
   
   
3. Defining who owns the sustainable finance purpose within firms and the required governance framework. The purpose of sustainable finance is to ensure finance can be a lever for sustainable outcomes.

The paper also includes an overview of current policy challenges and champions a whole market approach to build a more resilient and sustainable economy.

Brexit and financial services

Thank you for your continued feedback on the impact of Brexit on your own business as well as your customers. Your insights on what next and views on equivalence continue to be welcome, as well as opportunities for the UK going forward. You can find our UK Transition Hub.

If you would like to share your latest views please do contact your account manager or reach out directly to Flora Hamilton, Director, Financial Services.