Financial Services policy briefing: September

The Chancellor’s Mansion House speech back in July has set off a host of work over the summer on strategy and regulation as the UK seeks to embark on a new chapter for financial services. The CBI continues to work with members to promote an open, sustainable, and technologically advanced financial services sector that is globally competitive and acts in the interests of communities and citizens, creating jobs, supporting businesses, and enabling growth across the UK.

The government released a number of consultations for response including the UK’s Prospectus Regime, UK Wholesale Markets Review and Access to Cash consultation. The CBI has responded to consultations where this a clear whole-economy impact and where the CBI is best placed to amplify critical messaging.

In what will be a busy autumn, there will be multiple opportunities for members to get involved. From input to the CBI’s position paper on sustainable finance to CBI presence at COP26. Further detail can be found below.

Consultation responses

HMT Wholesale Markets Review

The CBI is responding to HM Treasury’s review of the UK’s regime for wholesale capital markets which play a critical role in promoting growth and enabling businesses to grow. In the response, we will highlight:

• The importance of a flexible and proportionate regulatory approach that maintains a global horizon to encourage deeper capital markets that support growth and innovation whilst maintaining confidence in the quality of trading
• The need to balance promoting an important shift in investment culture, encouraging more businesses to use public markets to grow, with keeping pace with global developments to ensure the UK’s long-term competitiveness
• Reform to ensure a proportionate, globally competitive wholesale markets framework must proceed at pace alongside wider tax and regulatory reform, maintaining a robust institutional framework and improving an innovative culture in unlocking growth and investment.

If you would like any more information on this, please get in touch with [email protected]

Payment Systems Regulator (PSR) five-year strategy

The CBI has responded to the PSR’s five-year strategy consultation. The PSR’s proposals for a new 5-year strategy to new strategy designed to unlock the potential of UK payments. The strategy sets out an approach that aims to make sure payments and payment systems work well for everybody and that there is fair competition and access to payments for all. In the response, we highlighted:

• The need to balance competition and innovation with user protection
• A greater recognition of businesses as end-users of payments
• Bringing all users on the journey to a digital economy.

If you would like any more information on this submission, please get in touch with [email protected]

Ways members can get involved

Shape the CBI’s position on Digital ID

The Q3 CBI Financial Services Innovation Forum is taking place on 23 September, 14:30-16:00. This session will be used to discuss developments in the government’s proposals for a Digital ID. Members will have the opportunity hear from experts on how Digital ID is being used across the sector as well as help shape the CBI’s position on Digital ID. To join, please contact [email protected]

Bank of England CBDC Engagement Forum

The CBI will be a member of the Bank of England’s CBDC Engagement Forum. The Bank of England and HM Treasury will use the forum to inform their approach to CBDC including policy considerations and functional requirements pertaining to CBDC. More generally, the EF will have an important role in helping the Bank and HMT understand the practical challenges of designing, implementing and operating a CBDC. Chris Wilford, CBI Head of Financial Services Policy, will be representing the CBI on this forum. To feed into the CBI’s work, please contact [email protected].

Review the final draft of our sustainable finance position paper

In mid-October we will publish the CBI’s sustainable finance position paper “Financing the transition to a sustainable future”. The paper will provide recommendations from businesses to the government on how to build a sustainable economy, sustainable markets and sustainable communities together with the private sector. In September we’ll be collecting feedback from members and will share the final draft with our FS Sustainable Finance Working Group, FS Council, Corporate Forum, Energy and Climate Board, the Infrastructure Board and our Trade Association Council. If you will not attend any of these group meetings and would like to review the paper, please contact [email protected].

See us at COP26

The CBI is finalising our agenda for COP26 and we are looking forward to seeing you there. On 4^th September at 10:00, we will have a sustainable finance husting event, which you can attend in person or online. In the evening, we will welcome organisation leaders at our International Business Dinner with a renowned international speaker. On the 11^th we will continue with more husting events and open drinks reception in the evening.

Please do not hesitate to get in touch to share your COP26 plans with us. Our team will be present in Glasgow for two weeks and we would love to see you there. For more information please contact [email protected].

Have your voice heard in the CBI/PwC Financial Services Survey

The latest CBI/PwC Financial Services Survey is now live. This is a great opportunity to have your voice heard on the conditions your business faces. The data from the survey is monitored closely by policymakers and journalists, and so helps influence the debate about the shape of our economy and the policy changes needed to maximise the UK’s potential. Complete the survey here.