uk financial market regulation

Understanding the Importance of Adaptation

The UK financial services market must not shy away from highlighting its strengths as a global, full-service wholesale market with a wide range of expertise. To maintain this status, continuous evolution is essential. In light of recent proposals for reforming listing requirements, there will soon be discussions on potential changes to prospectus rules and other aspects of the market.

State of Permanent Evolution

Historically, markets have evolved out of necessity, and change has often been driven by external factors. Today’s UK financial services market can trace its roots back to the 1980s, but evolution remains necessary to maintain the UK’s strong position in the global landscape.

UK Market Strengths

The UK financial services ecosystem is integrated with a deepening technology ecosystem, offering a wide range of expertise across various sectors. Some of the UK’s strengths include:

  • First in the world for international debt issuance
  • Largest centre for commercial insurance
  • Number one for foreign exchange trading
  • Second biggest global financial hub, after the US

In 2021, more than 3,000 fintechs were headquartered in the UK, significantly more than Germany or France. Additionally, UK investment managers oversee over £11 trillion in assets. However, regulation is a factor that firms consider when deciding where to list, and access to capital and investor perceptions are often bigger priorities.

Delivering Better Markets System

The Financial Conduct Authority (FCA) is working with industry, government, and other regulators to grow the UK’s excellence as a market. Listing reforms are just one part of the broader ecosystem. The FCA aims to make the listing regime more accessible, effective, easier to understand, and more competitive for both issuers and investors.

Innovating in the Way We Consult

The FCA is exploring new ways of engaging with industry and other stakeholder groups for future regulatory reforms. This includes using different discussion forums, thematic blueprints, workshops, and live events to collaborate on policy proposals and focus on outcomes.

A Good Track Record – LIBOR Wind Down

The FCA has a good track record of working at pace and closely with international partners to ensure that UK and global capital markets work well. The successful wind-down of LIBOR in an orderly fashion so far is a great example of constructive collaboration between the private and official sectors.

Accountability by Metrics and Looking Forward

The FCA is committed to upholding market integrity and playing its part in driving productivity, improving operational efficiency, making proportionate regulation, and increasing trust, effective competition, and innovation in stable and international markets. The introduction of metrics in the FCA’s three-year strategy demonstrates a commitment to regularly report against those targets.

By george