UK Chancellor hails ‘fintech innovation’ and promises EU financial regulation bonfire

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After just a few weeks in a job that could only last a few months, Nadhim Zahawi has offered a taste of what may be in store for the UK financial services market.

Image source: Her Majesty’s Treasury

Nadhim Zahawi, the new UK Chancellor, outlined his vision for financial services in the UK, including the adoption of crypto assets.

In his first speech since taking over from Rishi Sunak, the current front-runner to be the UK’s next Prime Minister, Zahawi, himself a successful entrepreneur, hailed the UK market and in particular its fintech ecosystem. .

“Our goal is clear: to make the UK the most open, inclusive, welcoming, competitive, secure and transparent place to do business in financial services in the world.”

“We have the talent, the education system, the time zone, the deep and liquid capital markets. Quality regulation, globally respected institutions, a stable and renewed legal system.

“World-leading research, incredible FinTech innovation, top-notch cyber expertise. It’s where the world comes to fund everything from infrastructure to innovation to net zero transition.

These, he added, give the government “the tools we need to seize the opportunities of Brexit”.

Today, the government will introduce a bill which it hopes will become a law governing the regulation of financial services, which will include the repeal of “hundreds” of pieces of retained EU legislation.

Interestingly, this will include new powers for the financial regulator to boost competition. Zahawi said.

“UK financial regulation will once again be decided in the UK, for the UK, by the UK’s independent and expert regulators. And, as regulators take on new responsibilities, we will give the FCA and PRA a new secondary objective: to facilitate growth and competitiveness,” he said.

By making both growth and competitiveness a formal objective, he thinks the focus will be more on productivity in the medium and long term.

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