The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) should be tasked with preserving the UK’s status as an insurance hub post-Brexit, the London Market Group (LMG) has said.
According to LMG, Brexit offers an opportunity to review the current regulatory environment to ensure that domestic regulation remains proportionate and does not put London at a disadvantage.
“The FCA and PRA do not have such objectives and we think there would be value in giving them a balancing statutory objective to consider the impact of their actions on the competitiveness of the financial services sector,” Aubert said.
He added that a dedicated inward investment unit at the Bank of England should also be created to support, as well as encourage, new entrants to the UK as well as retain those currently present through the implementation of the new agreement.
“This would ensure that our regulators maintain a day-to-day focus on helping to maintain London as the global centre for specialty commercial insurance and reinsurance,” the LMG chairman said.
The LMG has made its recommendations to the UK government in its Brexit negotiations, including a proposed trade deal with the EU, which gives insurers, reinsurers and brokers continued rights to undertake cross-border activity.
The trade body is also calling for an early agreement on an implementation period to avoid a cliff edge on the day the UK leaves the EU.
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