AFME has today published A Renewed Agenda for UK Financial Markets, calling on the new UK Government to maintain momentum behind financial services reform and focus on measures that deliver investment, growth and competitiveness.
The report argues that significant progress has been made in reforming the UK's financial services framework in recent years. The priority now should be to ensure these reforms translate into tangible economic outcomes, deeper and more liquid capital markets and greater investment across the UK.
Adam Farkas, Chief Executive Officer of AFME, said: "This report comes at an important time for the UK, with a new Government focused on delivering economic growth. As ministers develop a long-term economic strategy, financial services and capital markets must be recognised as central enablers of investment, innovation and competitiveness.
"The UK has already established many of the foundations needed to strengthen its position as a leading global financial centre. The focus should now be on maintaining momentum behind the financial services growth strategy, supporting innovation, accelerating the adoption of DLT technology, and ensuring the regulatory framework promotes both resilience and competitiveness.
"The UK does not need to reinvent its wholesale market framework. The focus from Government and regulators should be on removing remaining frictions and ensuring reforms deliver real benefits for businesses, investors and the wider economy."
At a time when international competition for capital, listings and financial activity is intensifying, AFME argues that the UK should build on the progress already made through the Financial Services Growth and Competitiveness Strategy and recent Mansion House reforms.
The report sets out a targeted forward-looking agenda focused on improving market efficiency, supporting innovation, unlocking investment and ensuring that wholesale financial markets can play their full role in financing businesses, infrastructure and economic growth across the UK.
The report highlights a number of key priorities for policymakers, including:
- Delivering meaningful prudential reform through the Financial Policy Committee's review of bank capital requirements
- Ensuring the UK equity consolidated tape strengthens market transparency and liquidity
- Scaling the adoption of digital and DLT-enabled market infrastructure
- Removing barriers to growth such as high market data costs and unnecessary regulatory burdens.
AFME stands ready to work with Government, regulators and market participants to help deliver this agenda and ensure the UK remains one of the world's leading and most competitive financial centres.
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