Foreword Introduction: the opportunity Policy and regulation Aligning US and UK approaches Investment and capital 昀氀ows Sector focus Looking ahead Policy and regulation: removing friction US and UK 昀椀nancial and professional services: growing together The UK government is committed to The UK was the 昀椀rst 昀椀nancial centre globally to launch keeping the UK at the cutting edge of global a digital sandbox and open banking framework. Since innovation, and is implementing a responsive then, it has introduced a Financial Market Infrastructure and supportive policy environment with (FMI) sandbox to provide the infrastructure services that “We’ve been heartened by the openness to global business at its heart. underpin markets and make it easier for 昀椀rms to adopt new technologies. It has also expanded its successful government’s enthusiasm to establish The UK is one of the most open, connected and global open banking regime to include ‘open 昀椀nance’. This the UK as a global hub for digital will provide clear regulatory standards for a broader 昀椀nancial centres. It levies fewer restrictions on the assets. Our engagement with local movement of capital and people than many of its range of consumer products and services, helping 昀椀rms 1 identify new areas for growth. The UK’s successful open policymakers has been extremely competitors and 昀椀rms in the UK face lower policy- banking framework has been emulated by many other 2 constructive. This collaborative induced trade costs, according to an OECD assessment. jurisdictions looking for ways to embed innovation in Combined with one of the largest global tax treaty approach, alongside the UK’s world- regulatory frameworks. networks, US 昀椀rms located in the UK can expect leading 昀椀nancial ecosystem, makes lower barriers to trade and investment, reducing their More recently, government and regulators have operational costs. The country’s new streamlined London a natural place for a global turned their attention to high-pro昀椀le and potentially immigration system also allows FPS 昀椀rms to recruit top transformative technologies. The government has company like Ripple to establish its talent from around the world. As of the 昀椀rst half of 2023, announced it will introduce legislation to bring regional presence.” there was a 23% YoY increase in visas granted to workers stablecoins into the UK payments framework. It will also 3 in the 昀椀nancial and insurance industries. consult on a regime for digital assets. In the AI space, the Eric van Miltenburg, SVP, Strategic government is committed to international cooperation The UK’s framework for 昀椀nancial services regulation on regulation, engaging with global partners on setting Initiatives, Ripple is also internationally respected. It was voted the top up common standards and principles to establish an regulatory market in a global survey of senior 昀椀nancial 4 interoperable and innovation-friendly international And it reached its 昀椀rst executives two years running. framework. It has also launched a new AI sandbox to milestone in reforming its 昀椀nancial sector post-Brexit, help organisations demonstrate that their innovations the passing of the Financial Services and Markets Act of meet regulatory requirements. June 2023. This shows its commitment to keeping this regulation agile and coherent. It also presents the private This forward-looking policy and regulation provide a sector in both the US and UK with a prime opportunity conducive and stable environment for international to shape the agenda. tech 昀椀rms. The fact that close to 4,000 of them are based in the UK – making it the largest hub in Europe – 5 This commitment to innovation also is testament to that. o昀昀ers the right conditions for cutting-edge products and services to be launched and scaled in the UK, providing US investors with a steady pipeline of opportunities. Sources: 1. Fraser Institute 2022 2. OECD 2019, 2021 3. Home O昀케ce 2023 4. Du昀昀 & Phelps 2021 5. fDi Markets accessed October 2023 5