Financial services will remain a “guiding light” for Britain’s economy after Brexit and there is no intention to “rip up the rulebook” to compete better as a top financial centre, a UK government minister said on Tuesday.
“My priority is to ensure that financial services remain a national priority in robust health,” Economic Secretary to the Treasury John Glen told the annual conference FIA IDX, a derivatives industry trade body.
Britain, Europe’s top financial centre, leaves the bloc next March, raising questions about the ability of banks, insurers and asset managers in the United Kingdom to continue serving customers in the EU. Some pro-Brexit lawmakers say that if Britain does not get a good trade deal with the EU, it should ease banking rules to allow the City of London financial district to keep ahead of the pack.
“We do not intend to rip up the rulebook after Brexit,” said Glen, who is responsible for the financial services industry as a junior minister at the Treasury.
Britain had to bail out banks during the 2007-09 financial crisis, it began on Tuesday to sell off its shares in RBS, and Glen said tougher rules introduced since then have attracted international plaudits. “We are witnessing the triumphant return of a degree of discipline and robust regulation working in tandem with an ever dynamic market,” Glen said.
Britain must not forget that the main aim of regulation is to guard financial stability and protect taxpayers from having to deal with failures, he said.