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- Proposals to help provide support to consumers with their financial decision-making to be the next step in Edinburgh reforms, as Economic Secretary Bim Afolami visits the city to mark a year since their launch.
- Building on the progress made this marks the delivery of the 22nd of the 31 reforms, with plans in place to deliver on the last nine reforms.
- The inaugural Scottish-London Financial Services Forum takes place as Minister also meets with Morgan Stanley in Glasgow.
Economic Secretary to the Treasury Bim Afolami is today (8th December) announcing further changes to financial services as he marks the anniversary of the Edinburgh Reforms with a two-day trip to Scotland.
In the year since the launch of the Edinburgh reforms, the government has already delivered 22 of the 31 reforms including legislation which will overhaul the UKs regulation of prospectuses, the information available to investors when a firm raises capital and bringing forward secondary legislation to take advantage of the UKs newfound regulatory freedoms since leaving the EU through the implementation of the Wholesale Markets Review reforms. These changes mean the government is taking forward its ambition for the UK to be the worlds most innovative and competitive global financial centre.
Building on the reforms, the government and Financial Conduct Authority (FCA) has today published a policy paper as part of the joint Advice Guidance Boundary Review, outlining initial proposals for reform to help improve consumer access to support with financial decision making. Currently, there is an advice gap between holistic financial advice that is unaffordable for many, and guidance that is free to access but not personal to the consumer. This excludes people with modest investments, leaving them without the tools necessary to reap the significant benefits offered by our world-leading financial services sector.
The government has also today published its response to the Call for Proposals, which sought views on the additional metrics that the FCA and the Prudential Regulation Authority should report against, as part of work to embed their new growth and competitiveness objectives. The regulators have agreed to publish a series of new metrics, which will support scrutiny of their work.
Economic Secretary to the Treasury, Bim Afolami today said:
My number one priority in this role is to deliver on The Edinburgh Reforms. The reforms have shown the UKs dedication to fostering a sensible, innovative and robust financial landscape over the past year weve made significant strides towards creating an environment that supports economic growth, openness, and the well-being of savers.
Already companies worldwide are taking note of the UKs approach, and we will continue to deliver on our reforms as we make the UK the best place in the world to create and grow a business.
Miles Celic, Chief Executive Officer, TheCityUK, said:
The Edinburgh Reforms and the subsequent Mansion House Reforms were a positive signal of the governments commitment to maintaining the UKs competitiveness as a leading international financial centre. As we progress this important reform agenda, it is critical that government, industry and regulators work together to drive forward the implementation of the reforms and to deliver nationwide economic growth by bolstering the attractiveness of the UK as a place to list, invest, innovate and scale.
The Minister also held a series of roundtables on asset management and fintech in Edinburgh and visited Morgan Stanley offices in Glasgow. Since 2000 Morgan Stanleys office has grown from just six people to now employing more than 1,400 people. Edinburgh is currently the largest financial services hub in the UK outside of London, worth more than 14 billion to the UK economy and employing around 136,000 people.
Today is also the first Scottish-London FS forum chaired by the Economic Secretary in Edinburgh emphasising the governments commitment to economic growth and the importance of the Scottish financial sector in supporting this.
At the recent Autumn Statement, the Chancellor announced further advancements in delivering on the Edinburgh Reforms and Mansion House commitments including ambitious steps to increase the flow of capital to promising growth companies while simultaneously improving outcomes for savers and measures to enhance the UKs financial services regulatory environment.
The trip is the Economic Secretarys first trip to Scotland since his appointment, he said:
Edinburgh is a key part of our financial services landscape, and it was really important to me to come and see some of the great work being done here within the first month of my appointment. Scotland is known for its innovation and ingenuity and Im sure this will be the first of many such visits.
Sandy Begbie CBE FRSE, Chief Executive, Scottish Financial Enterprise, said:
We are delighted to welcome the Economic Secretary to the Treasury to Edinburgh for the launch our new UK Government forum - another important recognition of the vital contribution of Scotlands financial services industry to the UK economy.
The forum will be an opportunity to discuss our new sector growth strategy, which aims to harness our global leadership in areas like asset management, fintech, and green and sustainable finance, build on our strong foundations in banking, life and pensions and wealth, and unlock our expertise in data, AI and emerging technologies.
It is also an opportunity to share our insights on the Edinburgh Reforms, a year since they were announced here. The reforms aim to build on the governments vision for UK financial services to be an open, sustainable, and technologically advanced global centre that delivers for all parts of the UK and its communities.
Our sector growth strategy is very much aligned with this vision and recognises the UKs globally respected regulatory environment as an asset we must leverage to attract more investmen