07 May 2009

Bischoff Report sets out vision for UK financial services sector

UK’s regulators should take a lead on what is appropriate for the industry, the report demands. “We expect and encourage better regulation”, Sir Bischoff said in the opening remarks. “But not everything is broken”, he added.

A reformed financial services sector will play an important role in Britain’s economic recovery. It strongly argues that effective regulation with the UK taking a leading role in formulating global and European standards will be the most important determinant of the sector’s future success.

 

The report was published by the Financial Services Global Competitiveness Group, co-chaired by the Chancellor Alistair Darling and former Citi Chairman Sir Win Bischoff.

 

“We expect and encourage better regulation and believe that the most important global financial centres, including the UK, benefit from a regulatory framework which is both effective and has high standards”, Sir Bischoff said in the opening remarks to the report. “But not everything is broken”, he underlined and called for the UK to take a leading role in the standard setting process.

 

“Financial services will always be an important part of our own economy, and not just in London” Alistair Darling said and announced to publish proposals for strengthening the regulation of the financial services industry next month.

 

The states that the UK’s financial services sector can continue to be a world leader by working as a genuine partner of British business and emerging economies while embracing the need for global regulatory reform.

 

It highlights the contribution of regional financial centres and also argues that the UK-based industry must seize opportunities to help meet the financial services needs of businesses and citizens in emerging markets, such as China.

 

Alongside regulation, the Report also highlights the importance of maintaining effective long-term performance in areas such as the UK’s skills base, tax environment, innovation and promotional efforts to ensure that the financial services sector is well positioned to play a role in meeting the future economic opportunities of the UK and global economy.

 

The report concludes that Government and the industry need to take the long view and work in partnership and suggests a number of long-term ways in which this can be achieved.

 

Press release

Full report

© HM Treasury