Business & Investment

The City of London doesn’t have a Brexit bonfire, but it won’t be a Reuters “rule taker”

© Reuters.Catherine McGuinness, Chairman of the City of London Corporation’s Policy and Resources Committee, takes a photo in London


By Guy Faulconbridge and Huw Jones

London (Reuters)-London doesn’t want a bonfire to maintain its position as the top international financial center after Brexit, but is ready to act if the European Union blocks access, says the city of London Said the political leader.

The only global center comparable to New York, Brexit’s shocking voting and financial services in 2016 were almost forgotten by British leaders during EU divorce negotiations, separating the city from its largest single customer. Since then, London has experienced business and employment losses. ..

“It’s a shame to lose business, but it’s not catastrophic,” Catherine McGuinness, head of the City of London Corporation, the governing body of the ancient financial district, told Reuters.

According to McGuinness, the city did not want or expect the government of Prime Minister Boris Johnson to ignite a “regulatory bonfire.” Still, she said financial capital as large as London couldn’t be a “rule taker.”

“We’re not looking for a bonfire of regulation, we don’t want to break away from international standards. Absolutely not,” McGuinness said. “I don’t expect any major deregulation,” he said.

Asked if the UK is worth seeking so-called equivalence, it essentially agreed to be consistent with EU financial rules in return for market access. “Equivalence decisions need to be practical and we have been fully tuned in terms of rules.”

She said it was unreasonable for the EU to refuse.

“It’s clear that we can’t adopt rules. We need to create rules. What are our strengths and what we need to do to build them effectively?” I need to consider. I hope it goes against the framework of international regulation. It helps to shape it. “

The EU has stated that it would like to investigate deviations from planned UK EU regulations before deciding to access the UK.

Fish beat finance

According to McGuinness, Brexit’s unemployment rate in London has been around 7,500 so far, and investment consultant Oliver Wyman cut 65,000-75,000 jobs in the sector employed by the UK capital in 2016. He said it was at the lower end of the range predicted to be possible. One million people.

London dominates the $ 6.6 trillion daily foreign exchange market, is the largest center of international banks and the second largest fintech hub in the world after the United States.

New York remained at the top of the Global Financial Center Survey released by the Global Financial Center Index in September, while London strengthened its position second.

Trading of euro stocks and some derivatives departed for other European centers after Brexit, some to New York, as no European competitors controlled. , London considers New York, Shanghai, Tokyo, Hong Kong and Singapore as true rivals.

Some elements of fixed income, derivatives and capital markets moved after Brexit, according to McGuinness, but London maintained a much deeper capital markets in that time zone.

While the financial sector pays more than 10% of the UK tax bill, McGuinness said in 2019 that UK leaders would focus on trade in goods and largely ignore finance, bus during Brexit negotiations. Said he threw it under.

The UK’s trade agreement with the EU, signed last month, does not cover access to financial markets.

“I’m sorry. I was very surprised. I guessed that fish were more picturesque than finance. They didn’t tell our own story well or felt the sector was big enough. Maybe. How. “She said.

McGuinness said he hopes the Johnson administration will focus on the city’s future and help green finance, fintech, the environment, society, corporate governance (ESG) and new types of businesses generate capital. It was.

“I think we will continue to be the FX capital of the world-that’s my prediction,” McGuinness said when asked about the city’s long-term future. “We are very confident in London’s basic strengths and are confident that we will build our business elsewhere.”

The City of London doesn’t have a Brexit bonfire, but it won’t be a Reuters “rule taker” The City of London doesn’t have a Brexit bonfire, but it won’t be a Reuters “rule taker”

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