Recent reports suggest that Britain will reform its financial markets as a move to attract outside companies around the world. Even so these reforms will not deviate from European Union standards.
As it is already known that the UK withdrew completely from the EU last December. This allows the country to set its own financial rules. According to the finance ministry that the government will publish a detailed proposal in carrying out capital market reforms by the end of this year in the near future.
Financial Conduct Authority CEO Nikhil Rathi told City & Financial’s City Week event, the focus of the reforms is on market structure, commodity derivatives market regulation and improving access to market data.
Based on the study conducted, the questionnaire shows that there is a demand for the rules of listing companies on the Exchange to be relaxed. Nikhil Rathi stated that the matter would be negotiated by the FCA in July.
So far, the EU has provided little access to financial markets for the British nation. The lack of access from the EU has posed challenges such as sterling money market funds, 90% of which are listed in the EU, are banned from depositing sterling into UK banks.
Therefore, the government sees the need for financial reform in order to generate a better economy. The GBP has shown a strengthening against the US dollar to the trading level of 1.3920.
