Following the Leeds reforms announced today by the UK Chancellor, Rachel Reeves, the Association for Financial Markets in Europe (AFME) welcomes the UK’s forward-looking approach and recognition of the strategic importance of the financial services sector for the UK economy.

In particular, AFME strongly supports the Financial Services Growth and Competitiveness Strategy, reforms to make it easier for firms to raise capital in the UK, and the Prudential Risk Authority (PRA)’s decision to adjust the market risk framework.

Adam Farkas, Chief Executive of AFME, commented: “We strongly support the UK Government’s ambition to make the UK one of the most competitive and innovative financial centres in the world. The launch of the Leeds Reforms sets out a long-term vision for the sector, recognising the crucial role that financial markets play in delivering growth across the whole economy. This is an ambitious 10-year strategy, which can only be delivered through a joined-up approach between the UK Government and the regulators.”

“We welcome the continued work being done by the FCA to enhance UK capital markets, including improvements to the disclosure frameworks and measures to streamline the IPO prospectus timeline. However, we have concerns about the 75% prospectus threshold for further issuances and would have preferred to see simplified prospectuses for follow on offerings rather than a substantial increase in the threshold.”

“Finally, we welcome the PRA's announcement to adjust the market risk framework. The previous announcement to delay implementation to January 2027 provided an opportunity to make targeted amendments to support the objectives of the Basel Framework and we look forward to continuing to engage with the PRA on this important topic.”

“We also note the proposal to delay FRTB-IMA implementation, which reflects continued uncertainty regarding implementation in other jurisdictions. We encourage continued engagement between authorities to support international alignment.”

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