Tuesday, 23 November 2010

Working with Europe

Here is a summary of key points from Mark Hoban's recent presentation to PricewaterhouseCoopers:

  1. London is both the most global and the most diverse financial capital around the world.
  2. We will better create a more stable and competitive financial centre by working with the EU than by turning our back on it and letting other Member States get on with it.
  3. The EU has signalled that it's open for business and will not close its border or restrict the free movement of capital.
  4. We have demonstrated that we can work with and influence EU policy, by reversing the Council's position on the alternative fund managers directive.
  5. We should be working to ensure that new regulation promotes transparency, is non-discriminatory and support's competition.
  6. To achieve this, the government will need the engagement of and support from within the industry.
  7. The establishment of the City of London Corporation's International Regulatory Strategy Group, as well as the emminent launch of the UCITS IV consultation, are steps towards this.
  8. Engagement must be backed by solid evidence, and clear rationale.
It's hard to fault the argument that the UK needs to be part of a larger economic economic and policy bloc if it is to compete with global behemoths like the USA, China, etc.   Balancing all the special interest groups to achieve this in practice, however, is likely to prove much more difficult.