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Former Sky finance chief Andrew Griffith will lead the government’s financial services reforms, including sweeping plans to overhaul former Brussels insurance rules, after being appointed City minister by prime minister Liz Truss.
Griffith, a close ally of former PM Boris Johnson, had already been chosen as financial secretary to the Treasury, which will be wrapped together with the ministerial position into one role. He succeeds John Glen, who was a popular City minister during a turbulent four years punctuated by Brexit until his exit in July after Johnson announced he would step down.
His appointment comes at a crucial time for the City of London, as the UK pledges to accelerate reforms to its financial rules after making limited progress since leaving the EU more than two years ago. Chancellor Kwasi Kwarteng last week pledged a “Big Bang 2.0” for the City, driven by a post-Brexit overhaul of regulation to boost the sector’s competitiveness. The UK has lost thousands of jobs, more than £1tn of assets and billions in taxable trading and dealmaking revenues since the country’s departure from the EU, with Brussels and European Central Bank steadily demanding more jobs relocate inside the bloc.
Griffith will also lead the overhaul of the EU’s Solvency II rules that still govern the UK’s insurance sector, with the aim of releasing billions in capital to be invested in infrastructure and other long-term projects in the country. The role will require a degree of diplomacy as politicians look to take a more active role in financial decision-making, which has long been delegated to the Bank of England.
Lawmakers have proposed a financial services bill that would give ministers the power to challenge findings by regulators if they feel their decisions are holding back competitiveness. Regulators, such as the head of the BoE’s Prudential Regulation Authority, have cautioned that the City’s international reputation could be undermined if rules are loosened too much and it becomes seen as a less stable place to do business...
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