1. Innovative 2. Reach of 3. Regulatory 4. Access to 5. Resilient business Our global offer to business: ecosystem 昀椀nancial activity environment talent and skills infrastructure London and the UK’s competitive 15 strengths supporting economic growth The UK regulatory regime is highly respected on the global stage. 3.1 Regulatory stability and innovation Perceptions of a regulator’s, or government’s, ability to formulate and implement e昀昀ective policy is The regulatory regime in the UK is widely admired and considered the most an important factor in attracting international business. The UK favourable for FS companies. It is a major factor in businesses deciding to is perceived to be one of the locate in the UK and supports the UK’s international competitiveness. In the most e昀昀ective and respected regulatory regimes in the world. The City of London’s Vision for Economic Growth we outline the need for a clear international business community’s long-term strategy for FS regulations, given the emphasis companies place on perception of government stability. We also need to introduce new regulation gradually, allowing time for e昀昀ectiveness has turned negative across nearly all 昀椀nancial centres, changes to take effect. Singapore being the only exception. However, perceptions of UK regulatory e昀昀ectiveness turned positive in 2022 for the 昀椀rst time in three years. Regulatory stalemate, left many companies with regulatory implemented, or begun to Supporting a global 昀椀nance hub with due to Brexit and COVID-19, has been fatigue. As more resources are implement, all currently required a sophisticated domestic market. directed toward compliance with Basel Regulatory Framework addressed with new legislation and policy to permit and promote private The UK is home to a wide range of regulatory changes, costs and standards and they are broadly sector development. A survey of FS companies servicing domestic competition for quali昀椀ed sta昀昀 aligned with US and EU banks. business leaders by the IMD Business consumers and international have increased. School shows the UK saw the The UK has also signed several business. This presents a unique greatest improvement in regulatory Regulators have improved their trade and regulatory cooperation challenge for regulators who aim to perception in 2022. e昀케ciency and e昀昀ectiveness through agreements to ease cross-border protect consumers of domestic FS technology and increasing sta昀昀 business. Memorandums of products, without blocking global Source levels. UK regulators are supportive understanding or free trade 昀椀nance 昀椀rms from international IMD 2023 of innovation in capital markets and agreements (FTA) have been signed capital markets. The UK government were the 昀椀rst to introduce sandboxes with the US, EU, Australia, CPTTP, has tried to address this through London’s Commercial Courts to test 昀椀ntech advancements. India, and Saudi Arabia, to allow the Financial Services and Markets remain a preferred destination for Plantation Lane, City of London Sandboxes streamline the UK 昀椀rms to access those markets. Act 2023, while recognising the role international dispute resolution. introduction of new tech into markets There are ongoing negotiations with that regulation plays in safeguarding Most insurance, derivatives and home of English law, and companies and operational processes. Switzerland, Canada, Australia and international competitiveness. commodities trading contracts based here have access to its top English law provides the legal basis Mexico, as part of FTA negotiations. Regulators have been tasked globally are written in English law, practitioners. Companies based in for many international jurisdictions, International trade and alignment on with ensuring requirements are covering trillions of pounds of the UK also bene昀椀t from formation, standards open routes to growth for Source comprising an estimated 40% of all proportionate in speed and cost and 昀椀nancial transactions each year. restructuring and insolvency laws, UK companies. governing law in global corporate Basel Regulatory Framework Adoption 2023 appropriate to the customer type. English law supports business and UK regulations. arbitration. 77% of UK Commercial They should also be transparent, ambitions, it is visionary and Court claims in 2019 involved at least The UK is aligned with international Source to help markets work better and progressive, and it has the support one party outside England and Wales 昀椀nance standards to ensure improve UK competitiveness. of a robust court, arbitration and and 43% of claims involved parties all interoperability across multiple LegalUK 2023 However, 昀椀nding this balance has disputes infrastructure. London is the located outside England and Wales. markets. UK banks have either