Philip Hammond, the Chancellor of the United Kingdom, assured a selected set of financiers that the rules will not be diluted by his government when it comes to protecting the British financial services sector post Brexit. He emphasized that the UK Government will not tolerate any kind of protectionist measures imposed by the EU member states for the sole aim to lure away business from British shores.
UK to remain as the global finance hot spot
In his speech, which was clearly a product of much thought, Hammond told the audience, most of whom who were financial bigwigs in their own right, that his priority is to craft policies which would permit the United Kingdom to continue as a global financial pivot. He said that the financial services are one of UK's principal exports. It follows that the deal which can be signed on this one must be a specially tailored one.
The chancellor admitted that legitimate concerns exist among Britain's EU colleagues on the subject of supervision and oversight of the UK financial markets. The latter is providing critical financial services to not only companies based in or working out of the EU but also to many EU citizens. Hammond said that such issues will be solved by making future-proof proposals. The latter will result in better transparency, agreed standards, and cooperation based on global norms. He, however, said that the UK will soundly reject any kind of protectionist stance. Such arguments, he quoted from experience, are cloaked in favor of financial stability.
Of vultures and talent
Hammond's speech comes at a time when major financial centers inside the EU like Dublin, Frankfurt, and Paris are trying to snatch away businesses who are afraid of the time when Britain will finally sever its ties with the European Union. Some birds of prey are much bolder than others. The Frankfurt-headquartered European Central Bank has demanded that it be provided extra powers over the Euro-clearing operation. The latter's market is a staggering one trillion Euro and is primarily used for euro denominated financial products clearing. London, at present, has a stranglehold over this financial trade.
Chancellor Hammond pointed out the many benefits of UK, like language, talent, time zone, and an impeccable legal system. The capital markets are also one of the best in the world. He said that he wants the UK to lead the world in financial technology.