UK Minister to Prioritize Financial Services after Brexit

Financial services will be prioritized to remain as a “guiding light” for Britain’s economy after Brexit. Also, there are no plans to change the rules to compete better as a top financial center, according to a UK government minister on Tuesday.


Britain, Europe’s top financial center, will leave the bloc next March, raising questions about the ability of banks, insurers and asset managers in the United Kingdom to keep serving customers in the EU.


"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.


Some lawmakers that are pro-Brexit say that if Britain doesn’t get a good trade deal with the EU, it should ease banking rules to allow the capital of UK, 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.


Banks, insurers and asset managers with European bases in Britain are moving activities and staff from London to hubs in the EU in case of a no-deal Brexit.



Glen said it was neither in the interests of Britain nor the EU to exclude financial services from a future trading relationship after Brexit.


But so far, Brussels has indicated that financial services in Britain will likely get the same degree of restricted market access that other non-EU states like the United States and Singapore have.


Glen said he would ensure London remained one of the largest global centers for trading and clearing derivatives.

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