Leeds Reforms: Financial Services Growth and Competitiveness Strategy

The strategy will provide businesses with a more agile and proportionate regulatory environment through:

• Reforming of the Financial Ombudsman Service (FOS)

• Shortening FCA and PRA application deadlines for new firms and senior managers

• Reviewing the scope of Consumer Duty

• Reviewing and reforming the ring-fencing regime to support growth

• Focusing on priority growth areas to make the UK more attractive for managing investments, insurance and reinsurance. Strengthening the position of the UK as a global leader on sustainable finance.

The strategy will support relationships with advanced and emerging markets, in particular the EU, US, China, India and the Gulf. Changes will be made to improve cross-border financial flows and market access, including trade agreements and Overseas Recognition Regimes. The government will also establish an Office for Investment to help international firms in dealing with UK regulations.

The strategy aims make the UK the number one place for fintech firms to start-up, scale and list. The strategy sets out measures such as increasing R&D funding in financial services particularly in AI. Appointing an AI Champion for financial services to drive AI adoption and innovation. The FCA and PRA will be launching a scale-up unit to help start-ups and scale-ups. We’ll also see Open Finance and Smart Data initiatives being pushed through to improve SME access finance. 

The government have set out reforms including:

• Issuing the first remit letter from the Chancellor to the Financial Market Infrastructure Committee of the Bank of England to help create a more dynamic, efficient and digital Financial Services sector.

• Establishing a Listings Taskforce in the UK to help business list and grow.

• Moving Long-Term Asset Funds from the Innovative Finance ISA to the Stocks & Shares ISA to help private firms raise capital to grow.

• Publishing and responding to the final report of the Digitisation Taskforce to deliver a more coherent shareholding system.

• Publishing the Wholesale Financial Markets Digital Strategy that includes changes like modernising shareholder frameworks by removing paper share certificates.

The Financial Services Skills Commission will commission a report on AI skills needs, training and innovation in financial services. The government will set up a new Global Talent Taskforce and support business by streamlining the visa process and expanding certain visas. 

There will be support for clusters across the UK, for example, growing fintech clusters in Leeds and Manchester. There will be further support for the asset management cluster in Edinburgh. The delivery model includes investing via the British Business Bank’s Cluster Champions programme and the £500 million Mayoral Recyclable Growth fund.