Chancellor Rishi Sunak has made a major post-Brexit announcement as he states how the City of London’s future will include providing stability for EU financial services firms operating in Britain while providing the sector with more link to international markets.
Mr Sunak also announced Britain’s first-ever “long-term asset fund” which will be “up and running within a year” as he told the House of Commons financial services, “will be essential to our economic recovery from coronavirus, creating jobs and growth right across our country”.
“As we leave the EU and start a new chapter in the history of financial services in this country, we want to renew the UK’s position as the world’s preeminent financial centre. This is the start of a new chapter for financial services, the industry is better regulated, better capitalised and more resilient than in 2008. Coronavirus has reminded us financial services are essential services,” Mr Sunak said in a statement.
Mr Sunak also told the Commons he’s working on setting out a new vision for the sector, not based on a race to the bottom but for a financial services industry that is open, is innovative and leads the world in the use of green finance.
He assured that he wanted to give certainty on the nation’s approach to regulation after leaving the transition period.
“I remain firmly of the view that it is in both the UK and EU’s interests to reach a comprehensive set of mutual decisions on equivalence. It is now clear that there are many areas where the EU is simply not prepared to even assess the UK, so we need to now decide on how best to proceed.
“Of course we will always want a constructive and engaged relationship with the EU, but after four years I think it is time for us to move forward as a country and do what’s right for the UK.
“To provide certainty and stability to industry and deliver our goal of open, well-regulated markets, I’m publishing today a set of equivalence decisions for the EU and EEA member states,” Rishi Sunak said.
The framework by the Chancellor according to him is “to make this country more open, more technologically advanced and a world leader in the use of green finance”.
“The UK will, subject to market conditions, issue our first-ever Sovereign Green Bond next year. This will be the first in a series of new issuances, as we build out a green curve over the coming years helping to fund projects to tackle climate change and create green jobs,” he tweeted.