City of London: The State of the Sector - new report

20 July 2022

The financial services sector is a major driver of the UK’s economy. Securing its competitiveness is critical for future prosperity across the UK. The report shows where the UK is world leading, what steps have been taken to improve the overall environment for finance so far...

The report shows where the UK is world leading, what steps have been taken to improve the overall environment for finance so far, and considers areas for further reform.    Drawing on both independent metrics and wide consultation with the industry, it delivers on a key recommendation of Lord Hill’s UK Listing Review: to publish an annual review on the international attractiveness of the sector.   The report identifies areas of both strength and opportunity including:  Talent: the UK is a world-leading financial centre because of its access to unrivalled pools of expertise, talent, and skills.  We need to ensure the UK remains an attractive destination for global talent, by considering a route that would allow international workers to enter the UK for short-term, productive activity without requiring a visa.   Innovation: the UK is a leading global fintech hub. More than half of its unicorns are fintech firms – a higher share than in any other financial centre. But it needs to develop expertise in digital skills. The financial services sector can complement Government efforts via industry and educational partnerships.  Regulation: the UK is perceived as having the world’s preferred regulatory regime for financial services. But it should ensure the UK’s regulatory framework stays agile, coherent and competitive while delivering better outcomes. This includes the aim to improve the speed of FCA authorisation turnaround times.  The Financial Services Bill marks an important moment for the sector. Seizing opportunities to boost the UK’s offer will not only benefit the sector but the future prosperity of the UK economy as a whole. This includes strongly delivering on the new growth and international competitiveness secondary objective for regulators.   We look forward to working with HM Government and all parts of the sector to continue benchmarking, strengthening, and promoting UK competitiveness.   full paper at City of London

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