HM TREASURY News
Release (47/09) issued by COI News Distribution Service on 7 May 2009
A reformed
financial services sector will play an important role in
Britain's economic recovery, according to a report published
today by the Financial Services Global Competitiveness Group,
co-chaired by the Chancellor Alistair Darling and former Citi
Chairman Sir Win Bischoff.
The report, which reflects the view of the UK's financial
services leaders, states that the UK's financial services
sector can continue to be a world leader by working as a genuine
partner of British business and emerging economies while embracing
the need for global regulatory reform.
The Group was tasked in
June 2008 with examining the medium to long-term challenges to
London's continued success in global financial markets.
Working against the backdrop of the most severe financial crisis
in generations, the Group has proposed a ten to fifteen year
framework for strengthening the UK's place in the rapidly
changing global financial services industry.
The report highlights the contribution of regional financial
centres, noting that the majority of financial sector jobs are
based outside the City of London, providing employment for
hundreds of thousands of workers in regional economies. It also
argues that the UK-based industry must seize opportunities to help
meet the financial services needs of businesses and citizens in
emerging markets, such as China.
The Group acknowledges the huge fiscal costs of the banking
crisis to the global economy, taxpayers and public finances, and
strongly argues that effective regulation - with the UK taking a
leading role in formulating global and European standards - will
be the most important determinant of the sector's future success.
Alongside regulation, the Report also highlights the importance
of maintaining effective long-term performance in areas such as
the UK's skills base, tax environment, innovation and
promotional efforts to ensure that the financial services sector
is well positioned to play a role in meeting the future economic
opportunities of the UK and global economy.
Speaking ahead of the Report's formal launch at the London
School of Economics, Alistair Darling said:
"Next month, we will publish proposals for strengthening the
regulation of the financial services industry. Building on that
we need to plan for the future. Britain has been a world leader
in banking for centuries.
Financial services will always be an important part of our own
economy, and not just in London. We will all gain from a strong
and competitive financial services sector that helps to meet
important needs like small business financing, clean energy
infrastructure and investment for retirement. And we will also
gain from a strengthened financial services sector throughout the world."
Sir Win Bischoff said:
"International financial services are not a zero sum game:
progress in one country need not come at the expense of another.
It is strongly in the UK's interest to build on its existing
relationships with capital markets around the world, especially in
the emerging economies. The timing is right as the financial
landscape is changing around the world and we must make sure that
world-class centres like London participate and benefit from this trend."
Notes for Editors
1. The Chancellor announced during his Mansion House speech in
June 2008 that a forum would be set up to examine medium- to
long-term challenges to London's continued competitiveness in
international financial markets.
2. Co-chaired by the Chancellor and Sir Win Bischoff, then (and
now former) Chairman of Citi, the Group was established in July
2008 and has met monthly to consider how the changing
international economic landscape and the emergence of new
financial centres will affect the UK financial services
sector's long-term strategy.
3. The members of the Group on Financial Services Global
Competitiveness include:
Co-Chairs:
Rt. Hon. Alistair Darling, MP, Chancellor of the
Exchequer
Sir Win Bischoff, Former Chairman, Citigroup Inc
Members:
Mr David Blitzer, Senior Managing Director, The Blackstone
Group
Sir David Clementi
Mr Michael Dobson, Chief
Executive, Schroders
Mr Stuart Fraser, Chairman of the Policy
and Resources Committee, City of London Corporation
Dame Clara
Furse, Chief Executive, London Stock Exchange Group
Mr Anshu
Jain, Head of Global Marketes, Member of the Management Board,
Deutsche Bank AG
Mr Robert Jenkins, Chairman of the Investment
Management Association
Mr Archie Kane, Group Executive
Director, Insurance, Lloyds Banking Group
Mr Richard Lambert,
Director General, Confederation of British Industry
Lord
Levene of Portsoken KBE, Chairman, Lloyd's of London
Sir
David Lewis, Lord Mayor of London 2007-2008
The Rt. Hon The
Lord Mayor of London Alderman Ian Luder
Sir Callum McCarthy,
Former Chairman, Financial Services Authority
Mr William
Mills, Chief Executive Officer, Western Europe, Middle East and
Africa, Citi
Lord Myners, Financial Services Secretary, HM
Treasury
Mr Stuart Popham, Senior Partner, Clifford
Chance
Mr Kieran Poynter, Former Chairman,
PricewaterhouseCoopers
Ms Barbara Ridpath, Chief Executive,
International Centre for Financial Regulation
Mr Tom Scholar,
Second Permanent Secretary, HM Treasury
Mr Andre Villeneuve,
Former Chairman, LIFFE
4. The Group was served by a core Secretariat, staffed by Citi,
HM Treasury and the City of London Corporation.
5. The report can be found on the Treasury's website.
http://www.hm-treasury.gov.uk/ukinternational_financialservices.htm
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