Autumn Statement 2023 UK Global Finance Capital Again
Published / Last Updated on 23/11/2023
With Brexit and some EU financial services, but not all, heading out of the UK to Amsterdam, Frankfurt and Paris, London has fallen from No.1 to No.2 behind New York as the largest finance centre in the world.
The government is already committed to making the UK the world’s capital for Artificial Intelligence and for Green Technology. The Chancellor has now returned to finance with the target to restore London to being the global No.1 for finance. Jeremy Hunt has proposed:
Consultation for UK Based Captive Insurance Companies
Imagine a global firm like a cola firm with huge liabilities if their product was found to cause serious illness or the liability if products were compromised and poisoned half the planet. Imagine the liability and insurance claims as well as the fines.
- Global companies may be required to insure these liabilities. Imagine the insurance premiums.
- Many firms look to establish their own ‘insurance company’. Millions/Billions are paid in premiums to their own insurer. This is a captive insurer.
- Many captives are set up in Caribbean jurisdictions and elsewhere making the ‘directors’ millions in profit.
- A consultation will be established by Spring 2024 to explore a new framework to establish captive insurance companies in the UK.
Open Banking
Open banking is commonplace in the UK for bigger banking groups.
- The government will establish a new regulatory framework to help/require all banks (not just the largest) to participate in a sustainable open banking framework through which the technology and necessary consumer protections will be developed, and with appropriate regulatory backstops.
- A National Payments Vision will be in place next year to build on the UK’s existing payments system but also to explore the role of New Payments Architecture.
Faster Payments Improvement
- The government will override restrictive, archaic and fraud riddled EU-derived payments authentication rules to allow the UK to develop new, advanced technology faster payments system to better prevent fraud and improve the customer experience.
- The FCA is tasked with reviewing the rules and approach this focus on better consumer outcomes and lower consumer detriments.
- One of the first tasks will be to develop safer contactless payments and increasing contactless spending limits.
