Industry leaders survey highlights need for global action
The competitiveness of the UK's financial services sector at risk from unilateral regulation industry leaders told a Future of Financial Services survey by the Confederation of British Industry (CBI) and PricewaterhouseCoopers (PWC).
Lloyd’s chairman Lord Levene voiced concern about what he described as "politically motivated changes to the tax system.” He said: "Traditionally our biggest market has been the US, followed by continental Europe. The burgeoning eastern market presents another big opportunity."
Stuart Fraser, Chairman of the Policy & Resources Committee, City of London Corporation, said: "London's strengths are fantastic. But you can’t constantly bash it and tax it and expect it to stay that way."
Global, not local, regulation
Further waves of regulation are anticipated and the UK government is expected to remain active in the industry for some time to come. The leaders wanted co-ordinated global action rather than on a territory by territory basis.
But Lord Turner, chairman of the Financial Services Authority said: "there was no global law-making power", so it "was up to individual jurisdictions."
Tim Breedon, Chief Executive of Legal & General, saw a new role in managing the risks that accrued from the £1trillion of final salary pension liabilities.
